Multinational companies in SL say they could lose GSP+

Multinational companies have raised fears of Sri Lanka losing the EU's GSP plus trade concessions due to the current political crisis.

In a statement today, the Free Trade Zone Manufacturers’ Association (FTZMA) Executive Committee, which employs around 45,000 workers with more than 50 organizations, said that the negative image being portrayed in Western countries, including some of Sri Lanka’s largest export markets, has drawn concern from both domestic and international customers.

“Since the crisis started on the 26th of October, we have had many concerned inquiries from our customers and other stakeholders both local and international regarding the present political situation in the country. The image portrayed especially in the west has been extremely negative both in the print as well as digital media. Being one of the oldest democracies in the world this has been debilitating and shameful especially some of the recent incidents that took place in Parliament”, the FTZMA said.

This has had implications for most of the future order books of our members as well as the potential of losing GSP+ for exports to the EU,” FTZMA added.

They also said that upholding the Constitution and adhering to democratic processes and institutions are vital factors that would help to grow their businesses.

“Upholding the Constitution, Law & Order, Consistent policy making, and political & economic stability are key to growing our businesses and attracting further FDI (Foreign Direct Investment). We are extremely disturbed and disappointed with the behaviour of all political parties concerned in not reaching a consensus to this political flux.  It is important and urgent that all political leaders at loggerhead put the country first rather than their personal agendas,” FTZMA said.

The FTZMA also warned that failing to resolve the current political impasse would have grave concerns as Sri Lanka would become non-competitive and undesirable in the eyes of investors.