Sri Lanka is likely to regain a lucrative European Union trade concession for garments exports, the government said, five years after the South Asian island nation lost the discount over its failure to address human rights concerns.
The Generalised Scheme of Preferences (GSP) Plus had helped the garment industry, Sri Lanka’s second biggest foreign exchange earner after remittances, to benefit substantially with a 6-7 percent concession.
Industry players have estimated the benefit to be in the range of above US$500 million annually. It comes days before a parliamentary election in which pro-Western Prime Minister Ranil Wikremesinghe is seeking a stronger mandate from voters.
‘We are very, very hopeful that, within a matter of months, Sri Lanka will be able to get GSP Plus back,’ Harsha De Silva, deputy economic development minister, told reporters.