Lanka risks EU trade concessions over political slide back - EU Envoy

The European Union will consider stripping Sri Lanka of its duty-free access if it backs off from commitments on rights, the EU ambassador told REUTERS, amid current political crisis.

The European Union is worried the return of Mahinda Rajapaksa, as prime minister, could derail halting progress made towards national reconciliation following a war with ethnic minority Tamil separatists that killed tens of thousands, many during the final stages under his watch as president.

“The government got GSP on the basis of certain commitments, if these commitments are not met, then we would consider withdrawal,” EU ambassador to Sri Lanka, Tung-Lai Margue, told Reuters on Thursday.

Margue was referring to Generalized System of Preferences Plus status, under which Sri Lanka’s top exports of garments and fish get lucrative concessions in the world’s largest single market.

Margue was among a group of diplomats who met President Maithripala Sirisena this week for a briefing on the crisis sparked by his sacking of the prime minister.

The EU provides the trade concessions to developing countries, while it also monitors certain conditions including human rights.