European economy’s slow growth likely to impact Sri Lankan economy: Dr. Nandalal Weerasinghe

The European economy’s slow growth could have an impact on the Sri Lankan economy, unless the island nation gets the GSP plus trade concessions and the ban on fisheries exports to the EU region lifted, Deputy Governor of the Central Bank, Dr. Nandalal Weerasinghe has said.

Quoted in a statement released by the country’s main business body, the Ceylon Chamber of Commerce (CCC) on Tuesday, Weerasinghe, however, said the U.S. economy and India’s growth prospects were bright spots for the Sri Lankan economy, which is expected to grow above 5.5 percent during the year 2015.

He also said the British economy, which buys a major chunk of the Sri Lankan apparel products is faring well and that will also augur well for the local economy.

However, he warned that the European economy’s slow growth could have an impact on the island nation especially since EU trade concessions had been withdrawn and a ban on fisheries exports to the EU had been put in place.

The EU decided to withdraw the GSP deal in August 2010 saying Sri Lanka had not complied with the eligibility criteria, such as implementing international human rights conventions.

In June, Sri Lanka’s foreign ministry said the island nation faced a loss of one billion rupees annually as a result of the GSP plus concessions being withdrawn.

The EU ban on fisheries exports were implemented in January this year. (Xinhua)