Access to European markets is also important at a time when exports to the US are slowing down.
"I'd be very, very surprised if you're denied GSP Plus," Kennedy said. "But you will have to effectively implement all these conventions in these areas."
The EU will "grant GSP Plus and then the carrot and stick will start," he said. "They'll say 'if you want to continue to get GSP Plus you need to do better in this area or that area'."
Kennedy also said the EU "has been very smart" about monitoring Sri Lanka's implementation of the international conventions.
"They are not going to be the judge of implementation but it will be an oversight body established under these conventions, such as the United Nations human rights convention," he said.
Sri Lanka maintains it has ratified the international conventions but the EU has said more effective implementation is required given concerns over disappearances and attacks on the media.
Kennedy said there was a debate about what impl