Sri Lanka has bright prospects of recovering European Union's GSP Plus trade concessions that were withdrawn in 2010. The loss of the GSP Plus concession has greatly affected the Sri Lankan apparel sector. Various EU committees have already assured their support to help regain the facility and a visiting member of European Parliament has assured help to Sri Lanka to regain tariff concession.

The EU withdrew the GSP Plus facility in August 2010 claiming Sri Lanka's failure to comply with the eligibility criteria that included implementation of international human rights conventions. However, with Sri Lanka’s new government taking measures to restore democracy and human rights, the country is hopeful that the EU will consider reinstating the concession.

Sri Lanka’s clothing industry was the main beneficiary, using tax breaks to sell to high street retailers in Europe. It gained about $150 million annually due to preferential tariffs. It says the withdrawal of European Union trade benefits has increased its costs and eroded its competitiveness.

The GSP Plus gives some 15 developing countries access to EU markets with preferential conditions in return for implementing international conventions on human rights, labour standards, sustainable development and good governance.