EU says current import restrictions exerts negative impacts

The European Union (EU) on Thursday said that the current import restrictions by the government are having negative impacts on Sri Lankan and European businesses, and on Foreign Direct Investment.
This was conveyed in a joint statement issued by The Delegation of the European Union (EU) and the Embassies of France, Germany, Italy, Netherlands and Romania a short while ago,
The EU emphasised that trade is not a one-way street and the current import restrictions are having a negative impact on Sri Lankan and European businesses, and on Foreign Direct Investment.
Such measures impair Sri Lanka’s efforts to become a regional hub and negatively impact Sri Lankan exports by constraining the import of raw material and machinery, it added.  
EU recalled that a prolonged import ban is not in line with World Trade Organisation regulations.
The EU delegation expressed concern on Sri Lanka’s withdrawal of support for the United Nations Human Rights Council Resolution 30/1.
The Government has stated its continuing commitment, including to the EU, to fostering reconciliation, justice and peaceful coexistence among Sri Lanka’s diverse communities. The EU stands ready to support the Government’s efforts in this area. The rule of law and a vibrant civil society are essential in this regard.
The EU stated that they are looking forward to continuing their deep engagement with Sri Lanka, in line with shared international commitments and obligations.
On this occasion they underlined the EU’s long-standing support for Sri Lanka as a reliable partner, including through over 1 billion EUR of grants over the last 25 years, notwithstanding the Member States’ bilateral assistance.
They noted that the EU is a crucial economic partner for Sri Lanka. Due to the EU’s special Generalised System of Preferences (GSP+), Sri Lanka enjoys competitive, predominantly duty- and quota-free access to the EU market, based on the continued implementation of 27 international conventions on human rights, labour, environment, climate change and good governance.
Not least due to these unilateral trade preferences, the EU is the second biggest export market for Sri Lanka worldwide, with a positive trade balance of more than 1 billion EUR (about Rs.220 billion) in 2018 and 2019. (BS)