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Sri Lanka can’t afford to lose EU’s GSP+ concession at this stage: trade expert

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by Sanath Nanayakkare

Dr. Dayaratna Silva, International Trade Expert and Sri Lanka’s former Ambassador and Permanent Representative to the World Trade Organisation (WTO) said recently that those who assumed that Sri Lanka could do without EU’s GSP+ concessions at this stage were mistaken.

“When it happened the last time, GDP declined by more than 1% and it had an impact on employment levels, particularly in the apparel industry,” he said.

“Studies show that developed countries taking the decision to remove trade concessions based on non-economic reasons leads to punishing the poor and creating problems in achieving the United Nations’ Sustainable Development Goals such as poverty alleviation,” he said.

Meanwhile, Suresh de Mel Chairman of Export Development Board (EDB) speaking at the same forum said that Sri Lanka must do its best to retain the existing concessions made available to Sri Lankan exporters.

Hemantha Perera, Secretary of the Sri Lanka Chamber of Garment Exporters, a constituent member of Joint Apparel Association Forum said that Sri Lanka’s apparel industry must increase the value addition to its exports to the EU from the current 52 per cent to 65 per cent quickly if the industry wants to utilize the fullest extent of the GSP+ benefits.

“Vertical integration in Sri Lanka’s apparel industry is one of the quickest ways to do that,” he said.

The three speakers made these remarks while speaking at a panel discussion, ‘GSP Plus; Past, Present and Future’, hosted by the Federation of Chambers of Commerce and Industry of Sri Lanka and the Colombo Chamber of Commerce.

Perera noted that certain fabrics used for apparel production are currently being imported from regions that disqualify the manufactured product for tariff reductions under the EU’s GSP+ concessions. He noted that this disqualification could be resolved via local production of such inputs.

Speaking further he said: “Fabric is a key raw material required for apparel production. Synthetic fabric often has to be imported to Sri Lanka, making them ineligible for GSP+ concessions to the EU,” Perera said. “However, developments such as the Eravur Fabric Processing Park can change this situation and allow the industry to make greater utilization of GSP+ to the EU, which is our second-largest market.”

“We currently lack infrastructure for functions such as dyeing and printing. These are vital in improving key indicators such as lead times and strengthening the output potential of the industry. Even at present, our competitiveness primarily depends on factors like ethical manufacturing practices, compliances and the high skill levels of our employees,” he said.

The other speakers at the event included the Ambassador of the European Union to Sri Lanka and the Maldives – Denis Chaibi, and Ambassador of Sri Lanka to the European Union – Grace Asirwatham.

The Joint Apparel Associations Forum said that it has been working with the government and companies in the industry to develop solutions to increase value addition into apparel; the setting up of the Fabric Processing Park at Eravur is the first step, achieved with consistent government support, JAAF said.



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UN Global Compact Network Sri Lanka mobilizes business to lead with purpose

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As businesses navigate an increasingly complex operating environment shaped by workforce transformation, evolving stakeholder expectations, technological disruption and shifting market demands, strengthening performance requires more than new strategies. It requires new ways of thinking, leading, and collaborating.

It was against this backdrop that UN Global Compact Network Sri Lanka convened CATALYZE 2026: Social, bringing together business leaders, sustainability practitioners, policymakers, development partners and industry experts to mobilize collective action and equip businesses with the knowledge, partnerships and practical approaches needed to strengthen performance through responsible business.

More than a forum for dialogue, CATALYZE 2026 was designed to help businesses think differently about performance. It reinforced that long-term success is increasingly shaped by how organizations lead, uphold human rights, foster inclusive workplaces, strengthen ethical governance, and build cultures that enable innovation, resilience and trust. Responsible business is no longer separate from business performance — it is fundamental to it.

Aligned with the UN Global Compact’s 2026–2030 Global Strategy, the Forum reflected its three strategic pillars — Equip, Catalyze and Advance — by strengthening business capability, fostering collaboration and mobilizing leadership to accelerate progress on social sustainability.

UN Global Compact Network Sri Lanka’s approach to social sustainability centres on driving this change — recognizing that meaningful progress comes not only through policies and commitments, but through the everyday decisions, leadership behaviours and organizational cultures that shape how businesses operate. CATALYZE 2026: Social encouraged participants to move beyond intention towards implementation, embedding responsible business practices into strategy, governance and organizational culture.

Opening the CATALYZE 2026: Social, Rathika de Silva, Executive Director of UN Global Compact Network Sri Lanka, spoke to the role of responsible business leadership in strengthening Sri Lanka’s global competitiveness:

“Sri Lanka has the workforce, resilience, and opportunity to compete not by being the cheapest producer, but by becoming the most trusted. As global expectations evolve, compliance is no longer simply a cost of doing business — it is the foundation of market access, and the decisions we make today will determine how strongly we compete in the markets of the future.”

The Forum featured keynote addresses, leadership dialogues and technical sessions on the issues shaping the future of business, including business integrity and anti-corruption, human rights, neurodiversity and inclusive workplaces, artificial intelligence and the future of jobs, the Women’s Empowerment Principles (WEPs), responsible sustainability communications, and workforce resilience. Together, these discussions highlighted how responsible leadership, inclusive practices, and strong governance contribute to organizational resilience, innovation, and long-term performance.

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A regional conversation on the future of English language teaching

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Free British Council online conference brings together leading educators from across South Asia to explore how creativity, inclusion and technology can help prepare learners for a rapidly changing world

The British Council has announced the South Asia TeachingEnglish Online Conference 2026, a free three-day event that will convene educators, researchers and teacher educators from across the region to examine one of the most pressing questions facing education today: how can schools equip learners with the creativity, adaptability and communication skills needed to thrive in an increasingly complex world?

Taking place from 23–25 July 2026, the online conference comes at a time when education systems across South Asia are grappling with the challenge of balancing curriculum demands, assessment pressures and evolving learner needs. While English remains a critical gateway to academic and professional opportunities, educators are increasingly seeking approaches that move beyond language acquisition alone to foster critical thinking, collaboration, learner agency and participation.

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The Ceylon Chamber convenes dialogue on energy security and standards for Sri Lanka’s energy transition

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The Ceylon Chamber of Commerce recently hosted a discussion titled “Energy Transition in Sri Lanka: Strategic Insights from Global Markets”, bringing together representatives from the public and private sectors, industry experts, academics, and other stakeholders to examine the opportunities and challenges associated with Sri Lanka’s evolving energy landscape.

Held at a time when countries around the world are accelerating their transition towards cleaner, more resilient, and technology-driven energy systems, the event provided a timely platform to examine renewable energy not only as an environmental priority but as a strategic pillar of national energy security, with implications for economic growth and long-term competitiveness. The discussion also considered the increasing importance of reliable energy infrastructure in meeting the growing demands of digital transformation, including emerging technologies such as artificial intelligence, electric mobility, and data centres.

The programme covered a wide range of topics relevant to Sri Lanka’s energy future, including renewable energy development, energy security, regulatory and policy frameworks, electricity sector reforms, energy storage systems, grid modernization, investment and financing considerations, and international experiences in energy transition. Particular attention was given to the need for creating an enabling environment that supports innovation, attracts investment, including the technical and safety standards required to protect consumers and businesses as storage and solar adoption scales nationally.

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