On March 22, 2022, in hopes to better trade relations with the European Union Sri Lankan lawmakers approved of a reformal of a long critized, harsh anti-terror law amid its economic crisis. This vote followed a European Parliament resolution passed last year regarding a preferential trade scheme with Sri Lanka, in leverage for rights reforms in Sri Lanka.
Most of Sri Lanka’s history since its independence from Britain in 1948 has been mired in armed uprisings. There were two Marxist insurrections in 1971 and 1987 to 1990. There was also a full-blown civil war between government forces and ethnic Tamil rebels that lasted 26 years. With a $7 billion debt obligation for 2022, Sri Lanka is badly in need of foreign currency with dwindling reserves and massive debts to pay. Trade relations between the EU and Sri Lanka are governed by a Partnership and Cooperation Agreement which states that the EU works to support the democratic and economic development of a country that has been in effect since April 1995. The Generalized Scheme of Preferences (GSP Plus) allows substantial duty concessions on imports from selected countries. The EU review on the concession is expected shortly after the approval of reformaity.
This relates back to class due to the interdependence of the currency being able to export more to the EU will help Sri Lanka’s economy develop and create more and better jobs for its people. There are severe shortages of essentials, such as medicine and fuel that have handicapped power supplies. Europe’s GSP Plus eliminates import duties on a large share of Sri Lanka’s products, such as textiles, tea and fish, an advantage worth some $360 million annually, according to the EU. Because of all the trade and co-dependence on the EU, Sri Lanka has strengthened its relationship with the EU from being so interconnected with the EU.