EU Sets Out Key Reforms Sri Lanka Must Deliver to Keep GSP+ Access

The European Union has outlined a series of legal and human rights reforms Sri Lanka must implement to retain preferential access to the EU market under GSP+, according to the 2026 assessment (SWD(2026) 192 final). The document reviews Sri Lanka’s performance from 2023–2025 and comes ahead of new rules requiring Colombo to reapply for GSP+ by 2028.

Core EU Demands

  • Repeal the Prevention of Terrorism Act (PTA) and replace it with a law meeting international standards. The EU notes that the proposed Protection of the State from Terrorism Act still contains provisions the UN considers incompatible with human rights.

  • Amend or repeal the Online Safety Act, which Brussels says threatens freedom of expression. The executive summary calls for amendments; the human rights section calls for repeal.

  • Strengthen accountability, including independent prosecutions and safeguards against torture and custodial deaths.

  • Formal moratorium on the death penalty, moving toward abolition. Sri Lanka has not executed anyone since 1976, but 806–817 prisoners remain on death row.

  • Advance reconciliation in the North and East, resolve land disputes, and end surveillance and intimidation of civil society.

  • Enact anti‑discrimination laws, decriminalise same‑sex relations, and strengthen protections against gender‑based violence.

Sri Lanka Must Reapply for GSP+

Under the revised GSP regulation taking effect in 2027, Sri Lanka must submit a new application by 31 December 2028. The updated scheme expands required international conventions from 27 to 32, adding:

  • Convention on the Rights of Persons with Disabilities

  • Paris Agreement

  • ILO Labour Inspection Convention

The EU warns that failure to apply—or failure to qualify—would result in loss of tariff concessions, which saved Sri Lankan exporters €139 million in 2024.

The EU’s concerns about public criticism of judicial processes, especially in politically charged cases, intersect with this framework. The uploaded document notes that the PTA was used even in 2025 for expressions of opinion about conflicts abroad, reflecting broader tensions between speech and judicial authority.

Why These Reforms Matter

Sri Lanka’s political landscape shapes EU expectations:

  • President Anura Kumara Dissanayake campaigned on anti‑corruption and reconciliation, gaining strong support in Tamil areas. The EU acknowledges commitments but says progress is “slow and uneven.”

  • Past governments repeatedly promised PTA reform but failed to deliver.

  • Moves to revive the death penalty—including discussions on using it for drug offences—have alarmed Brussels. In 2019, the EU warned that executions could jeopardise GSP+.

  • Civil society continues to face surveillance, intimidation, and Defence Ministry clearance requirements, which the EU says must end.

Trade Impact

Sri Lanka is the third‑largest GSP+ beneficiary, but EU imports fell from €3.2 billion (2022) to €2.64 billion (2024). Utilisation of GSP+ preferences reached a record 68.9% in 2024, with:

  • Clothing using 57.3%

  • Fish and seafood using 99.8%

Duty savings equalled 5% of total export value.

Bottom Line

The EU is not threatening immediate withdrawal, but the message is clear: Sri Lanka’s future access to the EU market depends on measurable, credible reforms—especially on human rights, accountability, and freedom of expression.

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