The apparel industry is expected to be badly affected by the suspension

The decision was taken after the Sri Lankan government failed to make a written commitment to improve its human rights record, the EU said in a statement.

The EU said it “regrets” Sri Lankan government’s “silence” in response to improving the human rights situation to extend the facility.

“In the absence of a reply from the authorities in Colombo by 1 July, the Commission is not in a position to table a proposal with a view to delaying the Council Decision,” the EU statement said.

Government 'prepared'

EU foreign affairs chief Catherine Ashton, however, said the EU will keep the “door open” for dialogue with the Sri Lankan government.

	Ms. Ashton says she 'regrets the silence' of Sri Lanka government

"We very much regret the choice of Sri Lanka not to take up an offer made in good faith and in line with the EU commitment to a global human rights agenda," Ms. Ashton was quoted in the statement.

The EU also said that it is yet to receive a response from the government “despite best efforts to secure a different outcome.”

But the government earlier said that it is prepared to face the challenge if the GSP+ trade facility is withdrawn.

In a statement issued last week, the Central Bank of Sri Lanka said that "prevailing crisis in some of the economies in the EU region has added to the difficulty of continuation of such concessions by the EU".

The government relaxed emergency regulations in May. It was widely regarded as a move to appease the international community including the EU.