Sri Lanka’s proposed new anti-terrorism law could jeopardise its eligibility for the European Union’s GSP+ trade concessions, the Joint Apparel Association Forum has warned, arguing that the legislation could become a major obstacle to the country’s application for the next trade cycle.
The association said it was not arguing that Sri Lanka did not need anti-terrorism legislation. Its concern, it said, was that an excessively broad and repressive law without judicial oversight could place international trade opportunities at serious risk, threatening livelihoods supported by the country’s export industries.
The association said the current GSP+ concession period would expire in 2027 and that Sri Lanka, like other beneficiary countries, would have to reapply to qualify for the next trade cycle.
Under the existing framework, the proposed Prevention of Terrorism legislation, if enacted in its current form, could become a principal obstacle to the country’s application, the association said.
The EU operates through a rules-based institutional system, and a failure to satisfy its requirements could result in Sri Lanka losing access to the trade concession programme, according to the industry body. It described GSP+ as the country’s largest trade tariff concession programme and warned that rejection of the application could carry substantial economic consequences.
The association urged the authorities to revise the proposed legislation before it is enacted, arguing that amendments made after passage could come at a much higher cost.
“We emphasise that it is very important to correct the draft legislation as soon as possible,” the association said, adding that attempting to make corrections after the law had been passed would be extremely costly.
The warning places the proposed legislation at the intersection of domestic security policy and Sri Lanka’s access to preferential international trade arrangements. The apparel industry’s concern is that the law, in its present form, could affect the country’s ability to secure continued trade benefits from the EU.
The association stressed that its objection was directed at the proposed law’s breadth and the absence of judicial oversight, rather than at the need for legislation to combat terrorism.
It called for changes to the draft before parliamentary approval, saying the consequences of losing preferential trade access could extend beyond the apparel sector to the livelihoods of hundreds of thousands of people who depend on international trade opportunities.
