The EU has granted Sri Lanka the GSP facility. This will allow Lanka to export its products tax-free to the European market. The country became eligible for GSP Plus after it ratified and implemented measures relating to human and labor rights, environment protection and good governance. The EU had withdrawn this facility in 2010 due to the poor human rights record of the country. Sri Lanka then applied for GSP Plus in July 2016.

The EU is Sri Lanka's biggest export market accounting for nearly one-third of Sri Lanka's global exports. In 2015, total bilateral trade amounted to euro 4.7 billion. EU imports from Sri Lanka amounted to euro 2.6 billion and consisted mainly of textiles as well as rubber products and machinery. Lanka will also get additional trade preferences.

The EU aims to support Sri Lanka’s economic growth by launching a series of initiatives which includes support to design and implement a coherent trade strategy for export competitiveness. While the UK is currently an important market for Sri Lanka, with Brexit becoming a reality, Sri Lanka will immensely benefit if it also focuses attention on accessing non-traditional markets among the EU countries. This will not only cushion the potential negative impact of Brexit on Sri Lanka but will also help contribute towards the country’s target of doubling its export revenues.