Sri Lankan garment exporters recorded a massive win as the United Kingdom moved to relax import duties on Sri Lankan-made apparel entering Britain.
UK preferential treatment
In an announcement on Tuesday, the UK High Commission confirmed that the new trade liberalisation rules on Sri Lankan garment exports will be in full swing next year.
It said that Sri Lanka will be able to compete better in the global trade while attaining preferential treatment in the UK market.
The island is set to benefit from the UK’s Developing Countries Trading Scheme (DCTS), allowing the former to source garment inputs from South Asian peers with tariff-free access.
Under the same programme, Sri Lanka is labelled as an “Enhanced Preference” country, enjoying an unprecedented trade advantage.
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A win for Sri Lanka
“We are pleased to confirm further details of the reforms to the DCTS.”
“I know from my discussions with the JAAF, Sri Lankan manufacturers, and UK brands that the changes are likely to have a significant positive impact on the garment sector in Sri Lanka, while helping lower prices on the UK high street,” said British High Commissioner to Sri Lanka Andrew Patrick, according to Daily FT.
Council for Business with Britain President Mark Surgenor also recognised this new development, expressing the organisation’s support for this new initiative in Sri Lanka.
“The upcoming changes to the DCTS will further strengthen Sri Lanka’s exports to the UK.”
“This is a particular success story for Sri Lanka’s garment industry, where the proposed changes will mean that more of Sri Lanka’s garment exports to the UK could qualify for zero tariffs,” said Surgenor.
“The Council for Business with Britain is very supportive of these changes and looks forward to continuing our work with businesses to promote trade between the UK and Sri Lanka,” he added.
A counterbalance to US
The United States remains the biggest market for Sri Lankan garment exports.
However, the 20 percent reciprocal tariff imposed by US President Donald Trump on the island put about 16,000 garment sector jobs at risk.
In light of these developments in the competition, the UK is slowly catching up as Sri Lanka’s most important garment export market.
In the first half of 2025, exports to the UK grew by 6.45 percent, valued at $366 million.
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