Sri Lanka rejects EU conditions to extend GSP Plus trade deal

June 24, 2010 (LBO) – The Sri Lankan government has rejected conditions imposed by the European Union to extend the GSP Plus trade deal giving exporters duty free access to EU markets, a spokesman said. He said the government wants the GSP Plus to be extended unconditionally.

If not the government is ready to look a alternative arrangements. We’re not going to leave the industry in the lurch. We have plans. We will make arrangements for them to be competitive in world markets.

We have six billion dollars in reserves. Today we can bring the dollar down to 108 rupees but we’re keeping it at 114 or will go to 115 so that manufacturers can have that benefit. We’re in a financially strong position as far as external trade is concerned to make the necessary adjustments to enable manufacturers to be competitive in world markets Media minister Keheliya Rambukwella said the government has foreign reserves of six billion dollars and would make alternative arrangements like using the exchange rate to help exporters remain competitive in world markets.

Basically this should end up in the dustbin, he told a news conference referring to demands for legislative changes, repealing of