Sri Lanka stands to benefit significantly from the United Kingdom’s recently announced reforms to the Developing Countries Trading Scheme (DCTS), unveiled on July 10, the British High Commission in Colombo said in a statement.
The updated rules include simplified rules of origin, allowing a greater volume of Sri Lankan goods—particularly garments—to enter the UK tariff-free, even when using materials and components sourced from other countries across Asia and Africa.
These reforms are expected to enhance Sri Lanka’s competitiveness in the UK market, which remains the second-largest export destination for Sri Lankan apparel. The changes aim to support domestic employment, increase export potential, and contribute to sustainable economic growth.
Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), welcomed the announcement:
“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 reforms form part of the UK’s broader Trade for Development initiative, designed to promote economic growth in partner countries while enabling UK businesses and consumers to access high-quality, affordable imports.
Last month, the UK government published its updated Trade Strategy aligned with its “Plan for Change,” which aims to strengthen international economic ties and deliver benefits to British households.
Wider DCTS Reforms and Global Impact
The July 10 announcement introduced a comprehensive package of trade measures to simplify imports from developing nations, delivering benefits both domestically and internationally.
According to the British High Commission, the reforms will enable UK consumers and businesses to access a broader range of competitively priced goods—including clothing, food, and electronics—while creating economic opportunities in developing countries such as Sri Lanka, Nigeria, and the Philippines.
“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 noted.
The updated scheme also guarantees continued zero-tariff access for countries like Bangladesh and Cambodia on key products such as garments and electronics, supporting existing trade partnerships and encouraging resilient global supply chains.
The UK’s DCTS reforms are expected to unlock new trade and investment opportunities, helping developing countries integrate more fully into global commerce while enabling UK businesses to tap into fast-growing markets and diversify sourcing strategies in an interconnected world.
