EU has granted approval for cumulation between Sri Lanka and Indonesia concerning textiles

The European Commission has granted groundbreaking approval for regional cumulation between Sri Lanka and Indonesia, focusing specifically on selected textile and apparel items. This pivotal decision, stemming from a collaborative effort by both nations, now allows them to export these goods to all 27 European Union member countries under the Generalized Scheme of Preferences (GSP).

This strategic move is anticipated to significantly bolster Sri Lanka’s textile and apparel exports to the lucrative EU market.

After a meticulous evaluation process, the European Commission determined that the prerequisites for establishing cumulation between these two distinct regional groups were satisfactorily met. Effective from August 8, 2024, Sri Lanka is authorized to apply cumulation of origin to specified materials from HS Chapters 51 to 55, 58, and 60, originating from Indonesia.

This arrangement enables Sri Lanka to utilize these materials in the manufacturing of textile products classified under HS Chapters 61 to 63, adhering to the guidelines of regional cumulation, contingent upon both countries maintaining their inclusion in the GSP framework.

This decision marks a significant milestone in fostering deeper economic collaboration between Sri Lanka and Indonesia, amplifying their competitiveness in the global textile market.



By facilitating easier access to raw materials and enhancing supply chain efficiencies, this initiative not only promises to expand trade opportunities but also underscores the EU’s commitment to promoting sustainable development and economic integration among its partner nations at all costs.

“This decision not only strengthens trade relations with the European Union but also underscores the commitment of both countries to adhere to rigorous origin rules and administrative cooperation,” Sri Lanka’s Ministry of Foreign Affairs said in a press release.

Dhammika Fernando, Chairman, Free Trade Zone Manufacturers Association, adds, Indonesia serves as a key source market for fabric imports used in Sri Lankan garment production for the European union.



While Sri Lanka is already negotiating a Free Trade Agreement with Indonesia, this new regional cumulation deal specifically bear fruits of trade with the EU under the GSP Plus scheme.