EU, India and China on Sri Lanka’s apparel export radar

Sri Lanka is hopeful of increasing its apparel exports to three large economies — the EU, India and China. It is currently negotiating Generalised System of Preferences (GSP) plus facilities with the EU and is in discussions with China to increase its apparel exports. Sri Lanka is also hoping that India will remove the current quota of 8 million given under the ISFTA.

Prime minister Ranil Wickremesinghe was in Brussels last week where he initiated talks with the EU on restoring GSP Plus status to his country.

Sri Lanka’s apparel exports registered four per cent growth last year and a GSP plus facility would be a further push for exports growth, according to Joint Apparel Association Forum (JAAF).

The south Asian nation is also hoping for a favourable outcome from the ongoing preferential trade negotiations with India and China. The Economic and Technology Co-operation Agreement (ETCA) between India and Sri Lanka is currently in final stages of negotiation.

The agreement is likely to open India’s apparel import market for Sri Lanka, and remove the current quota of 8 million under the Indo-Sri Lanka Free Trade Agreement (ISFTA).

Chinese government is also likely to offer a more flexible environment for Sri Lankan apparel exports.

Sri Lanka’s textile and garment exports stood at $4.7 billion in 2015. The country looks to increase this figure to $6 billion by 2019.