The British High Commission in Colombo announced that Sri Lankan garment manufacturers will gain unprecedented tariff-free access to UK markets under liberalised trade rules coming into effect in early 2026.
The reforms will allow Sri Lankan manufacturers to source up to 100% of garment inputs from any country worldwide while maintaining tariff-free entry to the UK.
Under the UK’s Developing Countries Trading Scheme (DCTS), Sri Lanka currently enjoys ‘Enhanced Preference’ status, which provides tariff-free access only if inputs are sourced from the South Asian region, along with certain processing restrictions. From 2026, Sri Lanka will benefit from the same product-specific rules for apparel (chapters 61 and 62) as lower-income countries with ‘Comprehensive Preferences,’ such as Bangladesh.
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 will have a significant positive impact on Sri Lanka’s garment sector, while helping lower prices on the UK high street.”
President of the Council for Business with Britain, Mark Surgenor, also welcomed the reforms, noting: “This is a success story for Sri Lanka’s garment industry. The proposed changes mean more of Sri Lanka’s garment exports to the UK could qualify for zero tariffs, further strengthening trade ties between our two countries.”
The UK emphasized that the enhanced trade arrangements demonstrate its commitment as a progressive trade partner. By simplifying rules of origin, Sri Lankan manufacturers will be able to compete more effectively in global markets while retaining preferential access to the UK.
The DCTS offers preferential trading arrangements for 65 developing countries, with Sri Lanka enjoying significant tariff reductions across multiple product categories.
In addition, the UK announced in June the creation of a new Asia Regional Cumulation Group of 18 countries. This allows Sri Lanka to source inputs for other eligible products from any country within the group, with final processing in Sri Lanka qualifying exports for preferential tariffs. The expanded cumulation provisions are expected to boost competitiveness and add greater value to Sri Lankan exports.
