Assuming Sri Lanka is given back GSP Plus benefits by the European Union, these will be for a maximum of seven years. That’s because Sri Lanka is expected to reach upper middle income country status by end 2016 and GSP Plus benefits don’t apply to this category of countries.

If Sri Lanka reaches the upper middle income country status, and maintains this status for three consecutive years, the country will only be given one more year by the EU before these trade concessions are withdrawn.

Once Sri Lanka is capable of maintaining the required per capita income level the EU would then give one more year for local industries to adjust before withdrawing the trade benefits.

The categorisation of Sri Lanka in the upper middle income country category, even if it happens this year, would take place in two or three years. This would mean that Sri Lanka could enjoy the trade concessions for just seven years if GSP Plus could be re-gained this year.

Sri Lanka enjoyed the EU trade benefits of GSP Plus in 2005 and lost them in 2010 after the country came under the hammer from the EU bloc for violating human rights, among other issues.