Sri Lanka apparel exports gain tariff-free access to UK from Jan 1
Sri Lankan apparel manufacturers will gain wider access to UK markets under liberalised trade rules taking effect from 1 January 2026, the British High Commission in Colombo said.
Under the reforms to the UK’s Developing Countries Trading Scheme manufacturers can now source up to 100 percent of materials globally while maintaining zero UK tariffs.
“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,” British High Commissioner to Sri Lanka Andrew Patrick said.
Fewer processing requirements now apply, removing the previous rule that two significant manufacturing processes must take place in Sri Lanka.
The liberalised rules also include the creation of an Asia Regional Cumulation Group of 18 countries applicable to all other exports from Sri Lanka.
“The reforms to the UK’s Developing Countries Trading Scheme remove previous restrictions requiring materials to be sourced regionally,” Yohan Lawrence Secretary General of the Joint Apparel Association Forum (JAAF) said.
“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.”
“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,” President of the Council for Business with Britain (CBB) Mark Surgenor said.
The UK is Sri Lanka’s second largest garment export market at approximately USD675 million in value, with exports expected to increase significantly under the new arrangements.
The Developing Countries Trading Scheme provides preferential trading arrangements for 65 developing countries. Further details are available at: www.gov.uk/government/publications/rules-of-origin-under-the-developing- countries-trading-scheme-dcts-are-improving
