Sri Lanka garments gain tariff-free access to UK
The Morning: Sri Lankan garment exporters have secured expanded and more flexible access to the United Kingdom market following the implementation of revised trade regulations that came into effect on 1 January, the British High Commission in Colombo said.
Under the new framework, Sri Lankan manufacturers are now permitted to source up to 100% of their inputs from any country worldwide while continuing to enjoy tariff-free access to the UK market. This marks a significant departure from previous requirements, which mandated that at least two substantial manufacturing processes take place in Sri Lanka in order to qualify for zero-duty treatment.
According to the British High Commission, the revised rules substantially reduce processing requirements, easing long-standing constraints faced by exporters and aligning Sri Lanka more closely with global supply chain practices.
The reforms also introduce an Asia Regional Cumulation Group comprising 18 countries, which will apply to other Sri Lankan exports to the UK. This allows exporters outside the garment sector to count inputs sourced from these countries toward qualifying for preferential market access.
Commenting on the changes, British High Commissioner to Sri Lanka Andrew Patrick said the reforms reflected the UK’s trade objectives.
“The reforms that are now in force demonstrate the UK’s commitment to creating shared prosperity through trade partnerships. 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.
“We recognise the Sri Lankan Government’s ambition for export growth and continue to advocate for improved utilisation of the scheme. Therefore, I invite exporters to explore how they can benefit from these reforms and access the zero tariffs that the DCTS offers.”
The changes were introduced under the UK’s Developing Countries Trading Scheme (DCTS) following representations from several beneficiary countries and industry stakeholders, including the Sri Lankan government and the Joint Apparel Association Forum.
Welcoming the move, JAAF Secretary General Yohan Lawrence said the revised framework removes a key structural disadvantage faced by Sri Lankan apparel manufacturers.
“The reforms to the UK’s Developing Countries Trading Scheme remove previous restrictions requiring materials to be sourced regionally. Sri Lankan manufacturers can now compete equally by accessing global supply chains.”
OSL take:
Sri Lanka’s steadily growing export industry is bound to witness further growth with tariff-free access to the UK, especially in the garment sector. The many trade agreements and trade concessions enjoyed by Sri Lanka with many other countries have also helped boost the country’s export industry, which is a key revenue generator to the country. The garment sector, which is a key sector in the export industry, is among Sri Lanka’s key export commodities. The growth in the export industry, especially garment exports, will see further expansion with the ongoing developments resulting in an increase in the business/investment opportunities in the sector. The growth, strength and overseas expansions of garment export businesses in the country and the increasing interest among foreign businesses/investors to explore the expanding opportunities, indicate the growing business potential in Sri Lanka’s export industry. While foreign businesses/investors explore the expanding opportunities in Sri Lanka’s export industry, they could also look at expanding operations through local collaborations. They could also look at setting up bases in Sri Lanka to export goods to countries where Sri Lanka enjoys trade ties and tariff concessions, which would enable lucrative business ventures.
| Article Code : | VBS/AT/20260113/Z_1 |