EU-Sri Lanka relations: A bond between trade and human rights

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Abstract

The European Union (EU) is Sri Lanka’s largest trading partner. The country has been a periodical beneficiary of the EU’s Generalised Scheme of Preferences (GSP+) for the last 15 years. Through the utilisation of the GSP+ mechanism, the EU aims to help Sri Lanka boost its trade, comply with International Human Rights conventions, and achieve Upper-middle income (Umi) country status. However, when Sri Lanka does achieve Upper-middle income status, it will automatically lose eligibility for GSP+ benefits. How will Sri Lanka continue to maintain significant trade relations when removed from the list of GSP+ beneficiaries? It is argued here that Sri Lanka is not ready to be excised from the GSP scheme. The country must overcome social, ethnic, and religious cleavages in a post-conflict scenario; it is essential for the EU to ensure the continued provision of trade benefits. The GSP+ status is of utmost importance to consolidate current economic achievements – as well as improve the quality of democracy in the country. Prospects in EU-Sri Lanka ties beyond trade preferential schemes must also be explored.