- Country or region
- Sri Lanka
- Trade topics
- Negotiations and agreementsTrade 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 and labour rights and working towards sustainable development.
- The EU is Sri Lanka's second-largest trading partner after China and its second main export destination, absorbing 22.4% of Sri Lankan exports in 2020.
- In 2020, Sri Lanka was the EU's 69th largest trading partner in goods, accounting for 0.1% of EU trade.
- Sri Lanka's exports to the EU are dominated by textiles and clothing, accounting for 52.3% of Sri Lanka's total exports to the EU in 2020.
- EU-27 imports from Sri Lanka have been constantly increasing since 2016, reaching €2,083 million in 2020.
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.
From 19 May 2017, Sri Lanka benefits from the special incentive arrangement for sustainable development and good governance, also known as GSP+.
Sri Lanka's trade preferences
- From 19 May 2017 Sri Lanka benefits enhanced market access to the EU under the Generalised System of Preferences Plus (GSP+). These one-way trade preferences will 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 conditions, protection of the environment and good governance. As is the case for all GSP+ countries, the removal of customs duties for Sri Lanka will be 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
EU grants Sri Lanka improved access to its market as incentive for reform
Removal of customs duties will come with rigorous monitoring of Sri Lanka’s commitment to sustainable development, human rights and good governance.