The Joint Apparel Associations Forum (JAAF) is likely to continue lobbying for the government to do all it can to secure an extension of EU trade concessions—as long as national integrity in not compromised—as local manufacturers are susceptible to losing out orders to other cheaper apparel exporting countries.

"We will study the latest EU report and then ask the government to do all it can to help secure GSP Plus trading concessions because it is critical for Sri Lanka’s exports, not only garments, to be able to access EU markets where consumer spending power is high," JAAF Secretary General Rohan Masakorala said.

"Of course, we are mindful of our national integrity. All we are asking is that the government do its best to communicate with European Commission as long as it does not compromise national issues," he told the Island Financial Review.

Masakorala said the survival of the apparel industry would depend on how competitive it is compared with other cheaper apparel exporting countries.

"It is a highly competitive market and buyers are often telling us that they have no problems in switching over to lower cost apparel suppliers. The GSP Plus concessions give us duty free access that helps remain competitive and this is why it is so critical," Masakorala said.

"It is not only the apparel industry that is benefiting from GSP Plus. Leather products, ceramics and other industries too benefit by the trade concessions," he said.

"The EU and US market is important to Sri Lanka because consumers in these countries have high purchasing power in securing markets in these regions can greatly benefit our export sector," Masakorala said.

Masakorala said the cost of losing GSP Plus has not been calculated.

"At this point we cannot really say what the loss would be. It is, however, significant," he said.

Many forget there is an opportunity cost of not having access to trade concessions. Without preferential access to the EU, which is the biggest destination for our exports, our competitiveness could be significantly undermined.

The EU has released a report on the human rights situation in the country painting a bleak picture and throwing doubt on the continuance of GSP Plus facilities to Sri Lanka.

Sri Lanka always stood firm by its decision not to subject itself to an EU investigation on human rights. The government said it would be a slur on the nation’s sovereignty to subject itself to such an investigation.

However, the government understands the need to improve the country’s human rights, so as to promote reconciliation, more than for trade concessions.

The government is formulating an action plan on Human Rights aimed at protecting the rights of every citizen irrespective of caste, race, religion and political preference, which is also expected to help Sri Lanka meet its international commitments such as those required by the European Union to be eligible for GSP Plus trade concessions.

Mahinda Samarasinghe, Minister of Disaster Management and Human Rights, recently addressed the Annual Sessions of the Organisation of Professional Associations (OPA) where he said the government was committed to guaranteeing human rights with the same commitment and purposes it defeated the LTTE rebels.

"The government is working on a National Action Plan to develop human rights and guarantee the rights of all Sri Lankans. This is in its draft stages," the Minister said.

"The Action Plan will facilitate Sri Lanka’s commitments to secure (EU) GSP Plus (trade concessions) and other international commitments," Samarasinghe said.

He said the government was committed to developing multiethnic and bilingual public institutions.

"This would help recreate Sri Lanka’s wonderful diversity and protect civil and political rights of every citizen in this country," Samarasinghe said.

"Political reconciliation will be the culmination of the government’s efforts. Political accommodation will be created. We are using home-grown processes of developing the political and development needs of the people," the minister said.