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- Sri Lanka
- Trade topics
- Negotiations and agreements
- Trade policy
On 19 May 2017 the EU granted Sri Lanka better access to the EU for its exports. It did so under the EU's Generalised Scheme of Preferences Plus (GSP+).
Being able to export more to the EU will help Sri Lanka's economy develop and create more and better jobs for its people.
The GSP+ scheme is conditional on Sri Lanka advancing human rights, labour rights and the governance of environmental protection, and working towards sustainable development.
Trade picture
- In 2024, the EU was Sri Lanka’s third-largest trading partner (accounting for 13.4% of the country's total trade in goods), while Sri Lanka ranked as the EU’s 73rdbiggest partner for trade in goods, accounting for 0.1% of the EU’s trade with the rest of the world.
- Total trade in goods between the EU and Sri Lanka accounted for €3.7 billion in 2024 (with a deficit for the EU of €1.6 billion).
- Total trade in services between the EU and Sri Lanka amounted to €1.3 billion in 2023 (with a deficit for the EU of €281 million).
- The EU’s imports from Sri Lanka mainly comprised textiles, which accounted for half of total imports. The EU’s exports to Sri Lanka consisted mainly of machinery and appliances, textiles, chemicals, and foodstuffs, beverages and tobacco.
- Sri Lanka is the third-largest beneficiary of the EU's GSP+ arrangement.
The EU and Sri Lanka
Trade relations between the EU and Sri Lanka are governed by a Co-operation and Partnership Agreement that entered into force in April 1995.
Sri Lanka and the EU meet regularly in the format of a Joint Commission, in order to ensure a smooth functioning and implementation of the agreement.
The main trade policy instrument governing trade between the EU and Sri Lanka is the Generalised Scheme of Preferences.
Since 19 May 2017, Sri Lanka has benefitted from a special incentive arrangement for sustainable development and good governance, known as GSP+. As a result, 59% of Sri Lanka' exports that are eligible for tariff reductions entered the EU at preferential rates in 2024.
Sri Lanka's trade preferences
- Since it gained enhanced market access to the EU under the GSP+ in 2017, these unilateral trade preferences consist of the full removal of duties on 66% of tariff lines, covering a wide array of products including textiles and fisheries.
- GSP+ aims to support Sri Lanka's economic development through more trade with the EU, as well as contributing to diversifying exports and attracting investment. GSP+ is granted on the condition of Sri Lanka's commitment to ratify and effectively implement 27 international conventions on human rights, labour rights, protection of the environment and good governance. As is the case for all GSP+ countries, the removal of customs duties for Sri Lanka is accompanied by rigorous monitoring of the country's progress in implementing these conventions.
Trading with Sri Lanka
- Importing into the EU from Sri Lanka
- EU trade defence measures on imports from Sri Lanka
- Exporting from the EU to Sri Lanka
- Trade relations are part of the EU's overall political and economic relations with Sri Lanka
- Sri Lanka is a member of the World Trade Organization