UK Opens Doors to Sri Lankan Goods with Zero-Tariff Trade Upgrade

COLOMBO (News 1st); Sri Lanka is set to benefit from a major upgrade to the United Kingdom’s Developing Countries Trading Scheme (DCTS), which will simplify import procedures and allow tariff-free access for a wider range of Sri Lankan goods.

Announced on July 10, the reforms aim to make it easier for developing countries to trade with the UK, while offering British consumers access to competitively priced imports — from garments and food to electronics. The changes are expected to support jobs and economic growth in partner nations, including Sri Lanka.

A key feature of the upgrade is the simplification of rules of origin, allowing Sri Lankan products to enter the UK tariff-free even when they include components sourced from other countries across Asia and Africa. 

They also ensure countries such as Bangladesh and Cambodia continue to benefit with zero tariffs on products like garments and electronics.

This move is designed to strengthen supply chains and encourage investment in emerging markets.

The UK government hosted a joint reception in London, bringing together British business leaders and ambassadors from around the world to brief them on the new measures. The DCTS, launched in June 2023, has already delivered over £16 billion in tariff savings on UK imports.

In addition to tariff relief, the UK will offer targeted support to help exporters meet import standards and expand access to services trade — including digital, legal, and financial services — through future trade agreements.

Major UK retailers such as M&S and Primark are expected to benefit from the reforms, which are part of the UK’s broader Trade for Development strategy aimed at fostering global partnerships and economic growth.