Business group warns PSTA risks could undermine GSP Plus status

Sri Lanka's apparel industry body has raised concerns about how discussions surrounding the Protection of the State from Terrorism Bill (PSTA) are being framed, warning that negative perceptions could have far-reaching consequences for the nation's economic interests.

The Joint Apparel Association Forum's intervention reflects growing anxiety within the business community that the legislative debate, if amplified or misrepresented internationally, could jeopardize Sri Lanka's Generalized System of Preferences Plus (GSP Plus) status. The trading arrangement provides crucial tariff advantages for Lankan exports, particularly in the apparel sector.

The association's statement underscores a delicate balancing act facing policymakers: the need to address legitimate security concerns while maintaining the international credibility essential for trade relationships. Officials and industry representatives have emphasized that how legislation is presented to the global community carries significant weight in the eyes of trading partners and rating agencies.

The GSP Plus facility, granted by the European Union and conditional on adherence to international labour and human rights standards, represents a substantial competitive advantage for Sri Lankan manufacturers. Any perception of democratic or human rights regression could trigger reviews of the country's eligibility.

The apparel sector, which employs hundreds of thousands of workers directly and indirectly, remains critical to Sri Lanka's economy and foreign exchange earnings. Industry voices are urging stakeholders to carefully consider the broader implications of legislative measures and public discourse surrounding security matters.