The Sri Lankan garment manufacturers have secured unprecedented access to the UK market under liberalised trade rules, the British High Commission in Colombo said.

Under the revised regulations, manufacturers are allowed to source up to 100% of inputs from any country worldwide while maintaining tariff-free access to the UK. 

Accordingly, fewer processing requirements now apply, removing the previous rule that two significant manufacturing processes must take place in Sri Lanka, the statement said. 

The liberalised rules also include the creation of an Asia Regional Cumulation Group of 18 countries applicable to all other exports from Sri Lanka. 

The British High Commissioner to Sri Lanka Andrew Patrick said: 

“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 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.”

Welcoming the enforcement of the reforms, the Secretary General of the Joint Apparel Association Forum (JAAF), Yohan Lawrence stated:

“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.”  

He further added that the garment sector accounts for over 60% of Sri Lanka’s exports to the UK and supports one million livelihoods across the country, adding that it was a significant boost for the country’s export potential to an important market and that they were excited to work with buyers and manufacturers to create significant growth from this opportunity.

The changes respond to requests from many businesses and countries, including the Sri Lankan government and the Joint Apparel Association Forum. 

The UK is Sri Lanka’s second largest garment export market at approximately USD 675 million in value, with exports expected to increase significantly under the new arrangements.