According to the concession clause of the India - Lanka free trade agreement, a total of 8 million Sri Lankan garments can enter the India market, subject to fabric and entry requirements.

After allowing 3 million Sri Lanka garments made from India's fabrics to be tax-free into the India market, India lifted the port restrictions and took effect from April 22nd.

At present, the next 5 million garments will be duty-free or at a preferential duty rate of 75% for garments made from fabrics other than India.

These new concessions have been consulted as part of the comprehensive economic partnership agreement between India and Sri Lanka.