Apparel exports from Sri Lanka grew 6.38 per cent in May 2019 . From January to May apparel exports grew 8.7 per cent against the same period last year. This has been the highest growth rate recorded in the past five years.

Sri Lanka’s apparel exports have made a significant impact on American, European and other major export markets around the globe. The country’s target is to reach $ 8 billion in exports by 2025. However, the EU and the US may withdraw GSP Plus concessions for Sri Lanka. And if this happens, it will automatically reduce the country’s export earnings and the competitiveness of its products in EU markets vis-à-vis several Asian countries enjoying such concessions. If the US too withdraws its GSP concessions, it will be a double whammy for Sri Lanka. About 57 per cent of Sri Lanka’s total exports go to these two markets. Apparels are Sri Lanka’s biggest exports to the EU. Almost 90 per cent of Sri Lankan exports to the EU are exported under GSP Plus or with zero duty. The GSP Plus scheme encourages increased value addition within Sri Lanka and thereby promotes backward integration, resulting in the setting up of new industries, and creating new employment opportunities in the country.