European Chamber of Commerce to host ‘Can Sri Lanka regain GSP Plus?’ forum
Friday, 20 March 2015 00:07
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‘Change,’ the word that excites the modern Sri Lankan society. The last three months have accommodated political and social change, but now the yearning of the business community is for change in the economic sphere. For a country dependent on exports for foreign revenue generation, no other single factor has a bigger impact on the economy than the ‘Generalised System of Tariff Preferences (GSP) Plus’ tax concessions.
According to a submission made in parliament last year, by the previous Government, the loss of the facility has caused the closure of 25 apparel factories, forcing almost 10,000 people out of work resulting in a total loss exceeding Rs. 782 million from apparel exports. The numbers are dramatically high as approximately 60% of Sri Lanka’s exports to the EU are garments.
Conducting a post-mortem on factors which led to the island losing the tax concessions in 2010 is a futile task, but a discussion on whether Sri Lanka could regain the benefit in the backdrop of political change is a mouth-watering proposition. That’s what the European Chamber of Commerce of Sri Lanka has lined up for you next week.
The Speakers
Discussions on GSP tax concessions have been held previously in the island, but this is the first time the participants would have the opportunity to get any clarifications directly from those who have been directly involved in the formulation of the GSP Scheme in the EU Headquarters in Belgium.
Therefore the ‘Can Sri Lanka Regain GSP Plus?’ forum hosted by the European Chamber of Commerce of Sri Lanka on 23 March is the first-of-its-kind in the island. The profiles of the esteemed speakers are listed below:
The importance of GSP Plus for Sri Lanka will be highlighted by Department of Commerce Director General R.D.S. Kumararatne. During his speech, he will present a quantitative and qualitative analysis on how the island could significantly benefit from the reacquisition of the tax concession.
Subsequently, a real life case study will unravel before the audience courtesy of Felix Fernando, who is the CEO/Director of Sirio Ltd. and Director of Omega Group of Companies in Sri Lanka (one of the top five exporters in the country). The veteran entrepreneur and businessman will share how the multifaceted business benefitted from the GSP Plus tax concessions and also the draw backs faced by him and his fellow business community subsequent to the loss of it.
In the aftermath of 2010, tax concessions granted to Sri Lanka have been significantly revised and many industrialists remain unaware of the existing tax mechanisms.
Nikos Zaimis – Deputy Head, European Commission, Directorate General – Trade, Sustainable Development and General System of Preferences (GSP) Unit will therefore elaborate on the key features of the current GSP scheme. He is one of the most sought after tax policy makers in the EU and will provide a realistic overview on the current tariff and non-tariff provisions.
The burning question among the general populous, but more increasingly among the business community is, how can Sri Lanka regain the Generalised System of Tariff Preferences (GSP) Plus tax concessions. Explaining the conditions for reforms and the pathway to achieving the much-desired state will be Marc Vanheukelen – Director, European Commission, Directorate General – Trade, Sustainable Development; Economic Partnership Agreements, which is the section directly responsible for the GSP among other subjects.
Deputy Minister of Policy Planning and Economic Development Dr. Harsha de Silva will then outline the new Government’s efforts in creating a positive transformation in the industrial sector. While highlighting the impact of GSP on trade, the Deputy Minister will educate the audience on the fresh steps undertaken by the Government to regain the desired tax concessions.
The final remarks on the current bilateral EU-Sri Lanka trade relations will be made by Andreas Julin – Trade Policy Coordinator, South Asia and Malaysia, European Commission Director General – Trade, Brussels. He will furthermore indicate areas for potential growth between the two parties.
The event on 23 March at the Winchester – The Kingsbury from 2:30 p.m.-5 p.m. will see the attendance of both local and foreign investors and policy makers. The unparalleled opportunity is open for members of the business community who intend to educate themselves on the GSP tax concessions. It will moreover, provide an opening to raise any concerns or questions on the subject matter.
The event hosted by the European Chamber of Commerce of Sri Lanka (ECCSL) is held in collaboration with the Delegation of the European Union to Sri Lanka and the Maldives, and the Apparel Exporters Association – 200 GFP. It is sponsored by the Board of Investment of Sri Lanka.
Tickets for the much-anticipated gathering are priced at Rs. 3,000 for ECCSL and 200 GFP members and Rs. 4,500 for Non-ECCSL members. Further information could be obtained from Kevin on 0773-317978 or Manik on 0773-408569.
