Discussions on GSP+ encouraging
|
Dr. P.B. Jayasundera
|
The Sri Lankan delegation returning from Brussels said that
discussions with the European Union (EU) on the extension of the GSP
Plus concessions were encouraging but still needed further dialogue.
Finance Ministry Secretary, Dr. P.B. Jayasundera said the outcome of
the visit was positive as EU officials said the temporary suspension of
the trade facility could be reversed based on the dialogue with Sri
Lanka.
The EU has said that it would look into the possibility of extending
the trade benefit to Sri Lanka provided certain conditions are
implemented during the suspension.
The EU temporarily suspended the GSP Plus concession to Sri Lanka
last month providing a timeline of six months for a favourable response
from the country. “There are certain misconceptions which need to be
cleared. The Government would inform the EU on the course of action it
would take to address them”, Dr. Jayasundera said.
The apparel and many other export sectors will be adversely affected
if the special trade preferences to the EU are withdrawn in the backdrop
of the global economic crisis.
Tea, garments and the manufacturing sector employ a large sector of
the country’s workforce while contributing extensively to the GDP
growth.
With regard to the third tranche of the IMF loan, Dr. Jayasundera
said the IMF is pleased with the macro economic growth and measures
taken to curb the budget deficit. The IMF at a media briefing last month
said the Government had overshot the budget deficit and would be keen on
seeing measures taken to manage the fiscal policy.
The statement made by Opposition Leader Ranil Wickremesinghe that
when he comes to power his Government would not repay loans was
detrimental to the image of the country.
“Loans are taken for infrastructure development and other long-term
investments.What is important is how best the funds are used in
profitable ventures”, he said. The construction of the Colombo South
Harbour, the Hambantota port, bridges, roads and highways and rural
electrification are some of the major investments.
LF
|
