Sri Lanka, Oct. 19 -- Sri Lanka's proposed law to replace the Prevention of Terrorism Act (PTA) could jeopardise its access to a key European Union trade concession, with industry stakeholders warning that the legislation, in its current form, could undermine the country's application for the next cycle of GSP+.

The Protection of the State from Terrorism Bill (PSTA), gazetted and tabled in Parliament this week, is intended to replace the PTA, which has remained in force for decades despite originally being introduced as temporary legislation in 1979. However, critics argue that the proposed law retains several of the existing Act's controversial provisions and introduces additional powers with limited judicial oversight.

The issue has i...