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The Government has reportedly stated that the proposed legislation aims to address shortcomings in the existing Prevention of Terrorism Act and respond to evolving security threats. While recognising the importance of national security, some business organisations have reportedly called for a careful review to ensure that security objectives are balanced with fundamental rights, adequate legal safeguards, and Sri Lanka\u2019s international commitments.<\/p>\n
The Ceylon Chamber of Commerce, in its observations on the proposed legislation, has reportedly called for clear legal definitions, appropriate judicial oversight, and adequate due process safeguards. It has reportedly emphasised that these measures are important for maintaining investor confidence, legal certainty, and Sri Lanka\u2019s reputation as a predictable, rules-based destination for trade and investment.<\/p>\n
Sri Lankan business bodies have raised concerns over the proposed terrorism bill’s impact on investor confidence, legal certainty and EU GSP+ access.
\nThe Ceylon Chamber of Commerce and JAAF seek clearer safeguards as apparel exporters face reapplication under the EU’s 2027 framework.
\nTextile and apparel exports exceeded $5 billion in 2025, with the EU taking 31.3 per cent.<\/p>\n
The Chamber is also said to have highlighted the importance of preserving access to the EU\u2019s GSP+ concession, which provides preferential market access for Sri Lankan exporters and supports employment, export earnings, and foreign exchange inflows.<\/p>\n
Reports suggest the proposed legislation has drawn scrutiny over the scope of certain provisions and safeguards governing executive powers. Although the draft reportedly contains provisions for judicial oversight and procedural protections, some stakeholders have reportedly questioned whether these mechanisms provide sufficient checks and adequately protect fundamental rights.<\/p>\n
Meanwhile, the Joint Apparel Association Forum (JAAF) has also reportedly underlined that the proposed legislation, in its current form, could complicate Sri Lanka\u2019s efforts to secure continued access to GSP+ under the next cycle. The industry body was said to be concerned that questions about the country\u2019s compliance with international commitments could create additional challenges in the reapplication process.<\/p>\n
The economic significance is particularly evident in the apparel sector. According to figures cited by the EU Delegation to Sri Lanka and highlighted in media reports, the country\u2019s textile and apparel industry reportedly generated more than $5 billion in export earnings in 2025, accounting for approximately 40.7 per cent of merchandise exports and directly employing around 350,000 people.<\/p>\n
The EU reportedly accounted for approximately 31.3 per cent of Sri Lanka\u2019s textile and apparel exports that year.<\/p>\n
GSP+ provides eligible developing countries with preferential access to the European market in return for commitments to implement international conventions covering human rights, labour rights, environmental protection, climate action, and good governance. The EU\u2019s revised framework, scheduled to take effect on January 1, 2027, will expand the number of relevant international instruments from 27 to 32. Existing beneficiaries will reportedly have until the end of 2028 to reapply, while continuing to receive existing preferences during the transitional period.<\/p>\n
Concerns about regulatory certainty and compliance with internationally recognised standards could also influence Sri Lanka\u2019s reputation as an international sourcing destination, some stakeholders cautioned, as apparel brands increasingly consider human rights, labour standards and environmental performance alongside price, quality and delivery when assessing supply chains.<\/p>\n
The broader concern, therefore, is whether Sri Lanka can strengthen national security while maintaining adequate safeguards, legal certainty and compliance with international commitments. For an export-dependent economy, striking this balance is important for sustaining investor confidence, trade relationships and long-term economic competitiveness.<\/p>\n
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Fibre2Fashion News Desk (DR)<\/p>\n
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