The Ceylon Chamber of Commerce has asked the Government to review draft counter-terrorism and organised crime laws carefully, saying they could affect Sri Lanka’s continued access to the European Union’s GSP+ trade concession.

In a statement, the Chamber said it had already submitted its observations on the proposed Protection of the State from Terrorism Act (PSTA). It said it was finalising its views on the proposed Prevention of Organised Crime Act and would send them to the relevant authorities shortly.

The Chamber acknowledged the Government’s efforts to strengthen national security. It said the draft laws must contain clear definitions, appropriate judicial oversight and adequate due process safeguards. In its view, these are needed to maintain investor confidence, legal certainty and Sri Lanka’s reputation as a predictable, rules-based destination for trade and investment.

The Chamber also urged the Government to align the new legislation with Sri Lanka’s international commitments and internationally accepted standards. It said this would improve the country’s prospects of keeping GSP+ benefits, which it described as important for exports, employment, foreign exchange earnings and economic growth.

Opposition Leader Sajith Premadasa made a similar warning in a separate statement. He said Sri Lanka could lose GSP+ if the Government of President Anura Kumara Dissanayake introduced what he called repressive anti-terrorism legislation.

Premadasa said the European Union had called for the repeal of the Prevention of Terrorism Act (PTA), not its replacement with more restrictive laws. He alleged that the proposed legislation could weaken civil, political and human rights and give the Government wider powers to decide who is classed as a terrorist. The Government has not been quoted responding to these claims in the reports reviewed.

Premadasa’s warning is a political assessment. The European Union has not announced any decision on Sri Lanka’s GSP+ status.

Background

GSP+ is a trade arrangement of the European Union that lowers or removes import duties on many products from eligible developing countries. In return, beneficiary countries are expected to implement a set of international conventions on human rights, labour standards, the environment and good governance. The scheme is reviewed periodically.

Sri Lanka lost GSP+ in 2010 and regained it in 2017. The Prevention of Terrorism Act, introduced in 1979, has for years been criticised by human rights groups and international bodies, and successive governments have pledged to replace or repeal it.

The Human Rights Commission of Sri Lanka and the Bar Association of Sri Lanka have also raised objections to provisions in the Protection of the State from Terrorism Bill and the Prevention of Organised Crime Bill, according to the reports.

What it means

GSP+ lets Sri Lankan exporters sell a range of goods to the European market at reduced duty, so any change to the concession would matter most to export manufacturers and the workers they employ.

For the wider public, the bills have not yet become law. The Chamber’s submission and the Opposition Leader’s statement show that the content of the final text, and how closely it follows international standards, is now being debated by business and political groups.