Sri Lankan garment exports will gain full tariff-free access to the United Kingdom from January 1, 2026, following reforms to the UK’s Developing Countries Trading Scheme (DCTS), the British High Commission in Colombo announced on Thursday .
Under the new rules, Sri Lankan apparel manufacturers can source up to 100 percent of raw materials from anywhere in the world while continuing to enjoy zero-tariff access to the UK market. The reforms also remove the previous requirement that two significant manufacturing processes must take place in Sri Lanka.
The changes are expected to significantly boost Sri Lanka’s garment exports to the UK, which is currently the country’s second-largest apparel export destination with shipments valued at approximately USD 675 million annually .
The reforms form part of broader changes to the UK’s Developing Countries Trading Scheme, which provides preferential market access to 65 developing countries.
British High Commissioner to Sri Lanka Andrew Patrick said the reforms reflect the UK’s commitment to strengthening trade partnerships and supporting Sri Lanka’s economic growth.
By simplifying rules of origin, the UK is improving market access for Sri Lankan exporters and supporting efforts to diversify exports, he said, while urging manufacturers to fully utilise the benefits offered under the scheme .
Welcoming the reforms, Joint Apparel Association Forum Secretary General Yohan Lawrence said the changes remove longstanding restrictions on sourcing materials and allow Sri Lankan manufacturers to compete more effectively in global supply chains.
He noted that the garment sector accounts for more than 60 percent of Sri Lanka’s exports to the UK and supports around one million livelihoods, calling the reforms a significant boost for export growth .
Meanwhile, Council for Business with Britain President Mark Surgenor said the reforms would strengthen UK-Sri Lanka trade relations, with benefits extending beyond the apparel sector. More than 90 percent of products are now eligible for zero tariffs under the DCTS, creating new opportunities for exporters in other industries, he said .
The reforms were introduced following requests from businesses and partner countries, including the Sri Lankan government and the Joint Apparel Association Forum, and are expected to lead to increased utilisation of the DCTS in the coming years . (Newswire)