US government has decided to discontinue GSP programme in 120 countries including Sri Lanka from the 1st of January 2018.
However the government announced it would have no effect on exports as predicted. Sri Lanka’s total exports to the US was USD 2.8 billion in 2016. Only USD 173 million exports, which amounted to 6.2% of the total, received the GSP. The number of textile exports was only 1% which amounted to USD 27 million. Any person can realise that this has no significant impact on our exports to the US,” he told a news briefing. Out of exports exported to USA rubber based products, enjoyed the most of US GSP benefits.
Out of a total Lankan exports of about USD 11,000 Mn., exports worth of USD 173 million received GSP benefits.