GSP Plus concessions by UK to SL seen as being hit with EU exit
By Hiran H.Senewiratne-June 28, 2016, 7:29 pm
"Some of the GSP-Plus concessions will no longer be on offer by the UK to Sri Lanka when the UK is out of EU, Executive Director of the Institute of Policy Studies Dr. Saman Kelegama said.
"It is said that 35 percent of Sri Lankan exports to the EU goes to the UK market and 40 percent of Sri Lankan textile and apparel exports to the EU goes to the UK market. They will not qualify for GSP-Plus preferences if and when we get such preferences, Dr Kelegama told The Island Financial Review in an exclusive interview.
He said the redeeming factors are that there is a two year exit period and during that time, if Sri Lanka could work out a bilateral deal with the UK on the basis of Sri Lanka’s Commonwealth membership, that could offset whatever preferential market access Sri Lanka loses in the UK market due to Brexit.
Kelegama said in relation to foreign investment that Brexit has already weakened the British pound. Thus, UK investors may consider diverting their investment to countries like Sri Lanka and other such countries where they expect to get a better return.
On Brexit, he said, the UK will no longer be obliged to offer quota-based jobs to citizens of the EU.
This will open up the job market for skilled and semi-skilled labour from elsewhere. Overall there will be more job openings for Commonwealth country citizens, including temporary workers. In other words, there will be more job opportunities in the UK market for Sri Lankans, Kelegama said.
The UK will no longer be required to tie-up its Overseas Development Assistance to the EU’s rules, regulations and directives. It is expected that the UK will divert its ODA to Commonwealth countries as a strategic measure.
"Overall, it is expected that there will be more direct financial assistance from the UK to countries like Sri Lanka, he explained.
