Ditwah impact: Sri Lanka to seek leniency from EU for GSP+

By Kelum Bandara 

Given the impact of cyclone Ditwah, which caused US $ 4.1 billion damage, Sri Lanka is to seek redress from the European Union in its evaluation of the country’s eligibility for GSP+ trade facility under the new criterion that will come into effect after 2027, an official said yesterday. 

The market in the European Union (EU) currently absorbs more than 24 per cent of the country’s total exports. 

Sri Lanka is presently under observation by the EU authorities for the extension of the GSP+ (Generalised Scheme of Preferences Plus) trade facility under the revised criteria to take effect after 2027. As part of the process, Sri Lanka’s overall performance in implementing 27 international conventions that it has already ratified is being evaluated. 

In addition to these existing conventions, countries seeking eligibility are now required to ratify and implement several more, including the Paris Agreement on Climate Change, the UN Convention on the Rights of Persons with Disabilities, ILO Convention No. 144 (on tripartite consultations), ILO Convention No. 81 (on labour inspections), the Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict, and the United Nations Convention against Transnational Organised Crime.

Sri Lanka is also required to repeal the Prevention of Terrorism Act to qualify for the GSP+ arrangement. Cyclone Ditwah, which struck Sri Lanka in late November, has caused an estimated US$4.1 billion in direct physical damage to buildings and contents, agriculture and critical infrastructure, according to a World Bank Group Global Rapid Post-Disaster Damage Estimation (GRADE) report. This damage is equivalent to about 4 per cent of Sri Lanka’s GDP.  

Asked whether Sri Lanka will seek leniency from the EU authorities because of such a loss from the cyclone, an official with knowledge in this regard said such a request would be made.