Sri Lankan apparel manufacturers are set to benefit from expanded access to UK markets under new, liberalized trade rules effective from January 1, 2026, as announced by the British High Commission in Colombo.
Under the updated UK’s Developing Countries Trading Scheme, manufacturers can now source 100 percent of their materials globally while still enjoying zero tariffs in the UK. “By simplifying rules of origin, we are supporting Sri Lanka’s economic growth by improving market access to the UK and helping to further diversify exports,” stated Andrew Patrick, the British High Commissioner to Sri Lanka.
These reforms reduce processing requirements, eliminating the previous necessity for two significant manufacturing processes to be carried out in Sri Lanka. The liberalized rules also introduce an Asia Regional Cumulation Group, comprising 18 countries, applicable to all other exports from Sri Lanka.
Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), remarked, “The reforms to the UK’s Developing Countries Trading Scheme remove previous restrictions requiring materials to be sourced regionally. It is a significant boost for our export potential to an important market, and we are excited to work with buyers and manufacturers in creating significant growth from this opportunity.”
Mark Surgenor, President of the Council for Business with Britain (CBB), added, “With over 90% of products eligible for zero tariffs under the UK’s DCTS, we hope exports from other sectors will also seize the benefits arising from the creation of a larger number of regional countries from whom they can now source inputs.”
The UK represents Sri Lanka’s second-largest garment export market, with exports valued at approximately USD 675 million. These new arrangements are anticipated to significantly increase export volumes.
The Developing Countries Trading Scheme offers preferential trading arrangements for 65 developing countries. Further details can be found at: UK Government Website.
(Colombo/Jan 8/2026)
