Lanka using only 30 p.c. of GSP+ concessions

Anjana Samarasinghe

Sri Lanka is using only 30 per cent of the GSP+ concessions granted by the European Union (EU) in 2005.

Speaking at a press conference to announce Sri Lanka’s Footwear and Leather Goods Fair, Export Development and International Trade Minister G.L. Peiris said the EU has offered duty free concessions to a large number of products imported from Sri Lanka under the GSP+ scheme but Sri Lanka was only using 30 per cent of the concessions.

Most of the local exporters are not aware of these duty free concessions applicable to over 7,000 products exported to the EU from Sri Lanka and the utilisation of these concessions is at a low level.

These concessions are valid till 2008 and Sri Lanka is negotiating with the EU to extend the time period till 2011.

The Minister was optimistic that Sri Lanka could have these concessions, granted owing to good labour practices, till that year.

The Minister also said that footwear exports have increased by 42.7 per cent during the first half of this year. The total exports earnings though this sector were US$ 9 million during this period.

Sri Lanka’s major markets are Europe, USA and Japan. The country supplies footwear to international brands such as Marks & Spencer, Bata France, H.H Browns and Nike.

Footwear industrialists have emphasised the importance of manufacturing footwear components in Sri Lanka. Industrialists also said that there is no pricing policy in the Pettah market for the materials, which has a negative impact on the industry.

Meanwhile, the Ministry of Industrial Development is trying to convince Government institutions to purchase from the local private sector than importing. The Ministry is also working on a ten-year plan targeting US$ 1.5 billion by 2016 through footwear exports.

The Sri Lanka Foot- wear and Leather Goods Fair will be held from November 24 to 26 at the BMICH. The fair is organised by the Export Development Board collaboration with the Ministry of Industrial Development and the Sri Lanka Footwear Association.