Sri Lanka has won a respite of almost one year on the endangered GSP+ concession for its exports into the European Union with the country among those listed by the EU for the extension of the facility next year, well informed trade and government sources said yesterday.

``While we are subject to an investigation by the European Commission on effective implementation of international conventions on civil and political rights, torture and the rights of the child to which we are party, GSP+ benefits will continue up to next October,’’ a senior official said.

Prof. G.L. Pieris, Minister of Export Development and External Trade yesterday confirmed that the ``immediate crisis has been resolved’’ and said that buyers in EU countries can now place their spring orders with manufacturers here without fear that the existing preferences will not apply.

``This is a big relief,’’ a leading garment industrialist said.

If the preferential facility into European markets was withdrawn, Exports would have enjoyed those benefits only up to December 15, he explained.

A statement from the European Commission on the GSP+ beneficiary list for the period 2009-2011 covers the 13 current beneficiaries and three countries previously not on the list – Armenia, Azerbaijan and Paguay.

Pieris explained that while Sri Lanka was on the beneficiary list, a qualification marked by an asterisk indicated that we were subject to the ongoing investigation.

``In all other respects, the EC has considered us a `vulnerable economy’ although we are no longer an LDC (least developed country),’’ he said.

Like Sri Lanka, El Salvador too is subject to a EU investigation for continuance of GSP+ benefits, diplomats said.

Lanka Business Online (LBO) last week quoted a Roshan Lyman, economic and trade advisor at the EU’s Colombo office saying that Sri Lanka will continue to enjoy GSP+ benefits during the investigation which takes up to one year to complete.

The LBO report also said that island’s apparel industry, a key sector of the economy which generates a large amount of employment and foreign exchange earnings, has said it fears the loss of the GSP Plus trade benefits because of the human rights allegations.

A spokesman for the Joint Apparel Association Forum, an umbrella industry body, said the listing of GSP Plus beneficiaries by the EC this week means Sri Lankan exporters and overseas buyers will be assured of some predictability over the trade benefits.

"This does not mean we are entitled to the entire three-year period," he said. "If the investigation outcome is negative, the concession will be withdrawn."

The EU probe was announced on October 18 and a period of four months is provided to gather information about the country’s eligibility, after which it can take another two months - till April - to examine the evidence.

"Also, there is provision in the regulation that if the European Council decides to withdraw the GSP Plus, then the decision comes into force after six months, so there is some predictability for trade.