UK trade reforms set to boost Sri Lankan apparel exports and jobs

Sri Lanka stands to benefit significantly from the UK’s latest trade reforms, as the British government unveiled a series of upgrades to the Developing Countries Trading Scheme (DCTS) on 10 July. 

The changes include simplified rules of origin, allowing more Sri Lankan goods — particularly garments — to enter the UK tariff-free, even when using components sourced from other countries in Asia and Africa, the British Department of Business and Trade said in a statement.

These reforms are expected to enhance Sri Lanka’s competitiveness in the UK market, which is the second-largest export destination for Sri Lankan apparel. 

The changes will support jobs, promote exports, and contribute to sustainable economic growth in the country.

Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), Sri Lanka, said:

“We warmly welcome the UK’s Trade Strategy.

The new rules allowing greater regional sourcing for garments while retaining duty-free access to the UK are a game-changer.

With the UK as our second-largest apparel market, this will boost exports, support livelihoods, and help us compete more fairly with global competitors.

The updated rules are part of the UK’s wider Trade for Development offer which aims to support economic growth in partner countries while helping UK businesses and consumers access high-quality, affordable goods. 

And just last month, the UK’s Trade Strategy was published in further support of the Plan for Change to grow the economy, strengthen international ties, and deliver for households across the UK.”

Wider DCTS Reforms and Global Impact

British consumers and businesses are set to benefit from a package of new trade measures unveiled today (10 July), which will simplify imports from developing countries — helping to lower prices on everyday goods while supporting jobs and growth in some of the world’s poorest nations, the statement said.

The measures will give UK consumers greater access to competitively priced imports — from clothes to food and electronics — as upgrades to the Developing Countries Trading Scheme (DCTS) make it easier for businesses to trade with the UK, helping to lower prices on the high street.

“Upgrades include simplified rules of origin, enabling more goods from countries like Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free — even when using components from across Asia and Africa,” the statement said.

The changes also ensure that countries such as Bangladesh and Cambodia continue to enjoy zero tariffs on key products such as garments and electronics.

This will open up new commercial opportunities for UK businesses to build resilient supply chains, invest in emerging markets, and tap into fast-growing economies, the statement added.