-By A Staff Writer
(Lanka-e-News -19.Aug.2025, 11.20 PM) Sri Lanka’s garment industry has been handed a lifeline in the form of duty-free access to the United Kingdom, under trade rules unveiled in Colombo on July 10. The move comes just as the United States prepares to impose steeper tariff rates on clothing imports — a divergence that could reshape the island nation’s export strategy.
The British High Commission confirmed that Sri Lanka will qualify for tariff-free entry under the UK’s Developing Countries Trading Scheme (DCTS), a post-Brexit initiative designed to deepen commercial ties with emerging economies. Rules of origin for textiles have been liberalised from early 2026, allowing manufacturers to source fabrics and inputs from a wider pool of Asian and African countries while still qualifying for zero-tariff treatment in the UK.
“The most significant positive change for Sri Lanka is that the rules of origin for the garments sector specifically will be liberalised,” the Commission said. “This ensures that DCTS countries can now source materials more flexibly and take advantage of 0 per cent tariffs on garments.”
Britain’s offer places Colombo in a favourable position at a time when Washington is moving in the opposite direction, tightening tariff regimes for developing country exporters. For Sri Lanka — where apparel accounts for 60 per cent of shipments to Britain and employs hundreds of thousands — the contrast is stark.
Andrew Patrick, the British High Commissioner, urged Colombo to seize the opportunity: “We want Sri Lanka to improve utilisation of the UK’s Developing Countries Trading Scheme for a wider range of goods, not just garments. With the government’s ambition to grow exports, and with the simplification of rules for other sectors too, we encourage more exporters to explore the preferences offered by the DCTS.”
The UK is already Sri Lanka’s second-largest export destination, worth $675 million annually. Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), described the deal as “a game-changer”.
“JAAF has worked closely with the UK Government on ways to improve utilisation of the scheme,” he said. “We are delighted that, for garments, it will now be possible to source more raw materials regionally and still qualify for duty-free export. This announcement will help secure employment, ensure sustainable growth and allow us to compete on equal terms with our major competitors.”
The contrast with the United States’ tougher line will not be lost on Sri Lanka’s policymakers. At a moment when the global apparel trade is shifting, Britain has offered not just tariff relief but political goodwill — a partnership Colombo will be under pressure to convert into jobs, investment and foreign exchange.
-By A Staff Writer
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by (2025-08-19 18:59:26)
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