Sri Lanka has recently regained the Generalized System of Preferences Plus (GSP+) status from the European Union (EU). The country is expecting the facility to help increase its apparel exports by around US $ 400 million.
“We have received the GSP Plus status and the apparel exports are projected to increase further,” claimed Minister of Industry and Commerce Rishad Bathiudeen.
The GSP facility allows the developing countries like Sri Lanka, Vietnam and Bangladesh to pay fewer or no duties on exports to the EU. The status gives them a vital access to the EU market which contributes to their growth immensely.
The media reports claim that the EU is offering a concession worth Euros 2.6 billion for exports from Sri Lanka each year.
The country reported overall apparel exports worth US $ 4.8 billion last year. In the first half of the current year, the Sri Lankan apparel industry has already recorded US $ 2.7 billion in revenue from exports.