Sri Lanka’s garment industry is set for a fresh export boost after sweeping reforms to the United Kingdom’s Developing Countries Trading Scheme (DCTS) came into force on January 1, granting tariff-free access to the UK market under far more liberal rules of origin.
Under the revised framework, Sri Lankan apparel manufacturers can now source up to 100 percent of their raw materials from anywhere in the world while retaining zero-tariff entry to the UK, a significant departure from earlier requirements that mandated regional sourcing and multiple manufacturing processes within Sri Lanka.
The changes are expected to sharply enhance the competitiveness of Sri Lanka’s largest export sector, which already accounts for more than 60 percent of the country’s exports to the UK and supports around one million livelihoods.