Ceylon Chamber Urges Cautious Approach to Anti-Terror Legislation Over Economic and Trade Concerns

The Ceylon Chamber of Commerce has formally submitted its observations regarding the proposed Protection of the State from Terrorism Act (PSTA), raising concerns about the potential economic and trade implications the legislation could carry for Sri Lanka.

Business Community Flags Key Concerns

The country's foremost business chamber has signalled that the proposed anti-terrorism law warrants careful and thorough scrutiny before being enacted, particularly with respect to its possible impact on Sri Lanka's international competitiveness and its continued eligibility for the European Union's Generalised Scheme of Preferences Plus, commonly known as GSP+.

The GSP+ trade concession grants Sri Lankan exporters preferential access to European markets and has been a critical driver of growth in key industries, including apparel and fisheries. Any legislative developments perceived as inconsistent with international human rights and governance standards could place this trade arrangement at risk.

Review of Organised Crime Legislation Also Underway

Beyond the PSTA, the Ceylon Chamber confirmed it is also in the process of finalising its position on the proposed Prevention of Organised Crime Act. The chamber indicated that its views on this legislation would be communicated to the relevant authorities once the internal review is complete.

The chamber's dual engagement with both pieces of proposed legislation underscores the business community's intent to play an active role in shaping laws that could have far-reaching consequences beyond the security sphere.

A Delicate Balancing Act

Sri Lanka finds itself navigating a delicate balance between strengthening its domestic security framework and maintaining the standards required to preserve vital international trade privileges. The Ceylon Chamber's intervention reflects growing awareness among business leaders that security legislation, if not carefully drafted, can carry significant economic consequences.

Stakeholders across the private sector are expected to watch closely as parliamentary deliberations on both pieces of legislation progress in the coming weeks.