With GSP Plus, Sri Lanka’s exports to the EU increased 18 per cent. In June 2017 the country regained GSP Plus from the EU. The facility was reinstated following Sri Lanka’s positive steps towards restoring human rights in the country. It took one-and-a-half months for the ratification of the agreement with the EU for the market expansion to commence in earnest. The expansion fructified in the month of July. From July 2017 Sri Lanka’s export figures grew 10.34 per cent year-on-year. Sri Lanka’s apparel exports account for 60 per cent of the country’s exports to the EU.

The country is now trying to diversify its export base. Sri Lanka's export basket has not changed much since the 1990s. If Sri Lanka is to substantially increase export revenues, diversifying to new sectors is the key to success. The EU is Sri Lanka’s second largest trading partner, next to India.

The European Union is the largest single trade market accounting for 16.5 per cent of the world’s imports and exports. This allows developing countries to open their markets for 500 million consumers over the European Union. It follows trade deals with 70 countries around the globe, representing 40 per cent of the world’s Gross Domestic Product.