Sri Lankan garment manufacturers are set to gain unprecedented access to UK markets under liberalised trade rules that will take effect in early 2026. The reforms will allow manufacturers to source up to 100% of garment inputs from any country worldwide while still maintaining tariff-free access to the UK.
Under the UK’s Developing Countries Trading Scheme (DCTS), Sri Lanka currently receives benefits as an Enhanced Preference country. At present, tariff-free access for Sri Lankan garments is permitted only if inputs are sourced from the South Asian region, with additional restrictions on processing. The upcoming reforms will change this by offering Enhanced Preference countries (including Sri Lanka) the same product-specific rules for apparel (chapters 61 and 62) as those granted to lower-income countries covered by the scheme (such as Bangladesh), which enjoy Comprehensive Preferences.
British High Commissioner to Sri Lanka, Andrew Patrick, said:
“We are pleased to confirm further details of the reforms to the DCTS. From my discussions with the JAAF, Sri Lankan manufacturers, and UK brands, I know these changes are likely to have a significant positive impact on the garment sector in Sri Lanka, while also helping to lower prices on the UK high street.”
President of the Council for Business with Britain, Mark Surgenor, stated:
“The upcoming changes to the DCTS will further strengthen Sri Lanka’s exports to the UK. This is a particular success story for Sri Lanka’s garment industry, as the proposed reforms will enable more of Sri Lanka’s garment exports to the UK to qualify for zero tariffs. The Council for Business with Britain is very supportive of these changes and looks forward to continuing our work with businesses to promote trade between the UK and Sri Lanka.”
These enhanced trade arrangements highlight the UK’s role as a progressive trade partner. By simplifying rules of origin, the reforms will allow Sri Lankan manufacturers to compete more effectively in global markets while maintaining preferential access to the UK market.
