Govt rejects EC's demand

The government has rejected the European Commission's (EC) demand to carry out a special investigation on the human rights situation in Sri Lanka to extend the GSP+ for another three years.

Minister of Export Development and International Trade Prof. G. L. Peiris last week told the media that the government unequivocally rejected this proposal because we can't betray the sovereignty and the dignity of the country for a $150 million tax concession. The Central Bank (CB) has estimated the total value of the GSP+ tax concession as $ 150 billion.

"Sri Lanka is an independent country and has a well developed democratic system and institutions. Therefore, we will not allow foreign countries to interfere in our internal matters and carry out investigations" the Minister said.

The Minister said that the government is amazed at the EC's decision, because the proposal came before Sri Lanka had applied for the extension of the GSP+ for another three years.

The three-year concession period started in 2005 and ends by December 31 this year.

We applied for the renewal on October 10 but the EC's demand on the special investigation came on September 23.

On the other hand the objective of this kind of investigation, the way it is conducted should be clear.

But in the EC's request these are vague and there are no precedents for this kind of investigation for 15 countries receiving the GSP+ concessions.

However, the Minister said that the government is ready for discussion and Sri Lanka's Ambassador to the EU will discuss with the EU on the issue.

Sri Lanka enjoys the tax concession for 7,200 export products to the EU including apparel, leather products, fish products as well as gem and jewellery.