A New Hope for Worried Exporters in Sri Lanka

The UK government has unveiled a package of reforms to simplify imports from developing countries, including Sri Lanka, the British High Commission announced in a recent statement.

Upgrades to the Developing Countries Trading Scheme (DCTS) will make it easier for businesses to trade with the UK, helping to lower prices for UK consumers while supporting economic growth in partner countries like Sri Lanka.

“The changes, part of the UK’s broader Trade for Development offer, aim to boost growth in partner countries and improve UK access to high-quality, affordable goods. This builds on the UK’s Trade Strategy published last month,” the statement said.

Among the new measures are simplified rules of origin, allowing more goods from Sri Lanka, Nigeria, and the Philippines to enter the UK tariff-free—even when components are sourced from across Asia and Africa.

This announcement follows extensive consultations with UK businesses, international partners, major importers, trade associations, the Sri Lankan government, and the Joint Apparel Association Forum (JAAF).

“The most significant benefit for Sri Lanka is the liberalisation of rules of origin in the garment sector. This will enable DCTS countries to source materials from a broader range of nations and allow manufacturers in Sri Lanka to take advantage of zero tariffs on garments. These changes are expected to come into effect by early 2026,” the statement added.

British High Commissioner to Sri Lanka, Andrew Patrick, said, “This is a win for the Sri Lankan garment sector and UK consumers. With the UK as Sri Lanka’s second largest export market, and garments comprising over 60% of that trade, manufacturers here will welcome this announcement.

We want Sri Lanka to increase utilisation of the DCTS for a wider range of goods beyond garments. With the government’s export growth ambitions and simplification of rules for other sectors, we strongly encourage exporters to explore the benefits offered by the scheme. The UK remains committed to fostering shared prosperity for both our countries.”