The UK has unveiled reforms to its Developing Countries Trading Scheme (DCTS), making it easier for countries like Sri Lanka to export goods tariff-free.
Key change:
The rules of origin for garments have been liberalized — Sri Lankan manufacturers can now use materials from a wider range of countries and still qualify for 0% tariffs.
Why it matters:
Garments make up over 60% of Sri Lanka’s exports to the UK, which is the island’s second-largest export market. This move is expected to boost exports and protect jobs.
UK’s stance: British High Commissioner Andrew Patrick called it a “win for the Sri Lankan garment sector and UK consumers,” urging exporters to explore broader opportunities under the DCTS.
Sri Lanka’s response:
The Joint Apparel Association Forum (JAAF) praised the changes as a game-changer, predicting significant growth in apparel exports and improved competitiveness.
Timeline:
These reforms are expected to take effect by early 2026, with ongoing support from the UK to help Sri Lankan exporters meet standards — especially in agri-foods and apparel.
(source doc.gov.lk)
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