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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 India but its main export destination, absorbing 31 % of Sri Lankan exports in 2015.
In 2016, Sri Lanka was the EU's 62nd 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 82% of Sri Lanka's total exports to the EU in 2016.
Textiles and clothing account for 61.9% of Sri Lanka's exports to the EU, followed by food products with 12.3% in 2016.
EU28 imports from Sri Lanka have been relatively stable between 2007 and 2016, increasing only from €2,087 to €2,225 million.

Trade in goods 2016-2018, € billions
Year	EU imports	EU exports	Balance
2016	2.6	1.4	-1.2
2017	2.7	1.7	-1.0
2018	2.8	1.6	-1.3

Trade in services 2015-2017, € billions
Year	EU imports	EU exports	Balance
2015	1.2	0.6	-0.6
2016	1.1	0.6	-0.5
2017	0.9	0.6	-0.3

Foreign direct investment 2017, € billions
Year	Inward stocks	Outward stocks	Balance
2017	0.1	0.8	0.7

Date of retrieval: 17/04/2019

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 at supporting 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.

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+.