Sri Lanka’s apparel sector is set to gain wider duty-free access to the United Kingdom after the latter announced sweeping reforms to its Developing Countries Trading Scheme (DCTS), allowing manufacturers to source up to 100 percent of garment inputs from any country for final manufacture on the island.
The liberalised rules of origin, due to come into effect in early 2026, are expected to remove long-standing barriers that limited sourcing flexibility and imposed stricter local processing requirements. The changes align Sri Lanka’s preferential access with that of lower-income countries such as Bangladesh, which already enjoy more generous provisions under the scheme.