Sri Lanka’s Apparel Industry Gets Tariff-Free Access to UK

COLOMBO (News 1st); Sri Lanka’s apparel industry has entered a new era of opportunity as liberalised trade rules under the UK’s Developing Countries Trading Scheme (DCTS) came into effect on January 1, 2026, granting tariff-free access for garment exports to the UK.

Under the reforms, manufacturers can now source up to 100% of materials globally while maintaining zero UK tariffs—a significant departure from previous restrictions that required two major manufacturing processes to occur in Sri Lanka. 

This change is expected to dramatically boost Sri Lanka’s garment exports, which already account for over 60% of the country’s exports to the UK, valued at approximately USD 675 million.

The new rules also introduce an Asia Regional Cumulation Group of 18 countries, enabling Sri Lankan exporters to source inputs from regional partners while retaining preferential tariff benefits. This flexibility positions Sri Lanka to compete on a level playing field in global supply chains.

British High Commissioner to Sri Lanka, H.E. Andrew Patrick, hailed the reforms:

“By simplifying rules of origin, we are supporting Sri Lanka’s economic growth and helping diversify exports. I invite exporters to explore these reforms and access the zero tariffs offered under the DCTS.”