Sri Lanka shows signs of being on the brink of an economic collapse, and it is at a crossroads where it has to decide whether to fight or flee. Successive governments have preferred to ignore the major issues without acknowledging and addressing them – but the cost to the country has been immeasurable. There are countless reasons to suggest that two of the biggest disasters Sri Lanka faced – the Easter Sunday attack and the war waged by the Liberation Tigers of Tamil Eelam (LTTE) – could have been prevented, had the authorities given adequate attention to these issues at their early stages, instead of ignoring them. The worst part is that the governments that rule the country are limited to only a handful of parties and leaders, and despite their reputation for incompetence, self-centricity, and corruption, neither the political powers nor the voters seem to be interested in, or capable of, ending this culture.This is why it was encouraging to see the Foreign Ministry announcing that on 25 June it had informed the EU of action underway to revisit provisions of the Prevention of Terrorism Act, No. 48 of 1979 (PTA), with the study of existing legislation, past practices, and international best practices. The Ministry had also informed the EU of the decision made by Cabinet on 21 June to appoint a Cabinet Sub-committee, and an officials’ committee to assist the Cabinet Sub-Committee, to review the PTA and submit a report to Cabinet within three months. “Toward this end, the Officials’ Committee was appointed on 24 June, with senior representation from the Ministries of Justice, Defence, Foreign Affairs, and Public Security, as well as the Attorney General’s Department, the Legal Draftsman’s Department, the Sri Lanka Police, and the Office of Chief of National Intelligence,” a press release said.It added that the EU was further informed of the granting of pardon by the President, exercising his powers in terms of Article 34 of the Constitution, to 16 former LTTE cadres convicted and serving sentences under the PTA, on 24 June. The organisation has also been apprised of the process that has been set in motion to release detainees who have been in judicial custody for a prolonged period under the PTA, it said.With reference to progress in ongoing reconciliation mechanisms, the Government has informed the EU of the release of Rs. 79 million to the Office of Reparations in June to settle 1,230 processed claims for reparation. An additional Rs. 80 million was released on 29 June to settle a further 1,451 processed claims, out of a total 3,389 processed claims.This comes after the EU Parliament last month called on the GoSL to repeal the PTA, and for the EU Commission to consider the temporary withdrawal of the GSP+ trade concessions to Sri Lanka, if this was not done.The latest developments proved particularly exciting, as immediately after the EU warning, there were many statements of bravado by sections of the Government that Sri Lanka does not need GSP+, and that the nation’s sovereignty would be compromised if Sri Lanka agreed to the EU’s conditions. However, even the best spinmasters can’t deny the importance of the GSP+ to Sri Lanka’s apparel sector, as well as its other export sectors.This is not a case of bowing down to Western powers, but a case of making dispassionate and rational decisions, as a successful businessman would do. Our economy is far too weak to absorb the loss of such a crucial trade facility.Meanwhile, it was also encouraging that Foreign Minister Dinesh Gunawardena and Foreign Secretary Admiral Prof. Jayanath Colombage met senior representatives of the Joint Apparel Association Forum (JAAF) Sri Lanka, the Seafood Exporters’ Association of Sri Lanka (SEASL), and trade unions, and reassured them of the Government’s commitment to ensuring that the EU GSP+ would continue to remain beneficial to the country. Meetings with the relevant Chambers of Commerce have also been scheduled with a view to updating them on the Government’s engagement with the EU.These are further encouraging signs that the Government has the interests of the stakeholders of these industries at heart, without letting its ego get in the way and taking rash decisions just to please a local audience that does not understand the importance of diplomacy and negotiation.