Sri Lanka plans to reapply for the European Union's GSP+ trade concession by the end of 2028 as part of its broader economic recovery strategy, with the government expressing confidence in meeting compliance requirements and debt obligations.
Sri Lanka intends to seek readmission to the European Union's Generalised Scheme of Preferences Plus (GSP+) by 2028, according to Foreign Affairs Minister Vijitha Herath. The GSP+ scheme grants preferential trade access to countries meeting international standards on human rights, labour rights, governance and environmental protection. Minister Herath stated the government is preparing to address all outstanding requirements needed for reapplication within the designated timeframe, while appealing for EU support in securing the facility once again.
The reapplication effort forms part of Sri Lanka's strategy to convert recent macroeconomic stability into sustained growth following the country's severe economic crisis. The government has made progress in restoring fiscal discipline, rebuilding foreign exchange reserves and advancing debt restructuring. The International Monetary Fund completed its fifth and sixth reviews of Sri Lanka's Extended Fund Facility programme earlier this year, releasing an additional US$695 million, with a seventh review expected in October. Minister Herath expressed confidence that Sri Lanka would meet debt repayment obligations from 2028 onwards, citing the comprehensive debt restructuring efforts undertaken.
Recent economic developments point toward cautious recovery. Tourist arrivals exceeded 1.45 million by mid-August, with authorities targeting 2.5 million visitors by 2026. The World Bank upgraded Sri Lanka back to upper-middle-income status, while the United States reduced its proposed tariff rate on Sri Lankan exports to 10 percent from 44 percent. The Asian Development Bank approved a US$200 million loan to support reconstruction efforts following Cyclone Ditwah and other recent disruptions.
Beyond trade policy, the government is advancing legal and institutional reforms. Minister Herath outlined plans to repeal the Prevention of Terrorism Act and introduce new counter-terrorism legislation, while finalizing amendments to the Online Safety Act. An Inter-Ministerial Standing Committee on Human Rights has been established to coordinate Sri Lanka's international human rights commitments as the country prepares to engage with the UN Human Rights Council.
