As Sri Lanka heads towards GSP + concessions being suspended from July, industry experts say they are encouraged by the stance taken by both the Sri Lankan government and also the EU.
Kumar Mirchandani, a key representative of the apparel industry said they were encouraged by the government response on the suspension of the GST+ facility.
“We feel the govt is doing its utmost in this situation,” he said, adding that they were also encouraged by the EU statement which provides a window for the facility to be restored.
The EU statement this week suspending the facility in six months says the decision can be reversed and the concessions restored if and when Sri Lanka shows progress in human rights shortcomings in the next six months. It also said that if the suspension takes place, Sri Lankan exports will still be entitled to standard GSP concessions on clothing and other items.
The government said in a response that it will engage EU states to discuss ways of overcoming the crisis. Industrialists say that any products reaching the EU after August 15 will be subject to the normal duties. “We have been told that if the duties become effective, the sellers would have to bear the cost of duties even if prices have been agreed to beforehand (and margins may come down sharply),” one manufacturer said. “Everything boils down to margins. There will be tight pressure (on margins),” he said. |
E-mail
