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Chamber leaders optimistic:

Lanka can overcome GSP+

Industry can find methods to adjust:

A concession is given for a certain time frame and we should not depend heavily on concessions. Regarding the GSP+ concession, the private sector especially apparel associations and the other related business chambers should go to the European Union (EU) through Ministries without making this a political issue, Federation of Chamber of Commerce and Industry of Sri Lanka (FCCISL) Past President, Nawaz Rajabdeen told Daily News Business.

He said the Government cannot subsidize everything. “The private sector must have an interest and give leadership in this issue and make a strong lobby to restore the GSP+ concession. This will directly affect exporters. Therefore, the export industry should lobby this firmly without depending till the Government and politicians interfere”.

“The industry will not collapse even if we do not receive the GSP+ concession. The industry will find methods and adjust into the circumstances, but we are confident that if the business community lobbies this issue in an influential manner, we could restore the GSP+ concession,” Rajabdeen said.

National Chamber of Commerce Sri Lanka (NCCSL) President Lal de Alwis said the chamber had sent an immediate appeal to the EU to restore the concession while taking note of the achievements that Sri Lanka has gained.

“A joint delegation of private and the Government sector from the level of the President should go and convince the EU,” he said. “The withdrawal of the concession is not fair by a country like Sri Lanka as it has just begun to stabilize the economy after a three-decade war. During bilateral discussions we need to convince the EU members that Sri Lanka could have this concession with the country’s economy picking up and concerning about the previous performance of the export industry,” he said.

National Chamber of Expor-ters of Sri Lanka (NCE) President, Sarath de Silva said GSP+ concession was a temporary concession. We believe that GSP+ does not apply to every export product. Yet it is useful to the country and for the exporters. However, Sri Lanka could still move forward without the GSP+ concession as our exporters are wise, hardworking and efficient and are capable to continue their performance outstandingly.

“Even if the country cannot restore this concession, our exporters will find markets. Majority of the industrialists say that if the concession were given it would have benefited both parties. Sri Lanka always finds ways to fight back and achieve our targets. Private sector will have to convince individual buyers. Our exporters have better communication links. Our products are superior compared to competitors and timely in delivering and in workmanship,” de Silva said.

Central Bank Governor, Ajith Nivard Cabraal said this was something the country was prepared for and expected. “We have taken necessary measures to overcome this situation. The drastic drop in the interest rates, support of the exchange rates, high confidence level of the business community, high competition and increased productivity will assist businesses to adjust into this situation.

“The country dealt with situations such as tea, rubber, food, financial, bank sectors. Now the country will also face the GSP+ concession issue in an optimistic manner and it will not have a bad impact on the country’s economy,” the Governor said.

Exporters’ Association Chairperson Nirmali Samaratunga said this would have a significant impact on Sri Lankan exports. They need to gear themselves to meet the stiff competition from low cost producers, and exploit the opportunities emerging once the recession eases and economies start recovering. This is already apparent in countries such as France and Germany.

“It is imperative for the export sector to immediately gear itself to reduce the fall out of this suspension.

“We have six months more before it lapses, and in order to retain our market share the sector is already proactively developing strategies such as greater emphasis on branding, value addition, specialization, high end marketing into niche markets and exploring alternate markets, which will also be reflected in the National Export Strategy being presently formulated,” Samaratunga said.

FCCISL President Kosala Wickramanayake said the business community should facilitate a healthy dialogue with the EU and the Sri Lankan Government. “The EU should not apply different standards for different countries which could be seen as biased as some countries having trade concessions from EU have worse records than Sri Lanka. EU should play a positive role rather than a negative one to assist Sri Lanka.

The Chambers should highlight to EU the gravity of killing an industry by taking out the facility that gave a competitive edge to our garments,” he said.

The apparel industry has the talent to overcome challenges if GSP + is not granted by EU. The only option is to produce better quality garments at a competitive price the consumers in west will be happy to buy.

A niche Sri Lankan product should be a definite seller in the proper market,” he said.

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