UK allows garments from Sri Lanka without tariff

The UK government has unveiled a package of reforms to simplify imports from developing countries which allows for more garments manufactured in Sri Lanka to enter the UK tariff-free.

 Upgrades to the Developing Countries Trading Scheme (DCTS) make it easier for businesses to trade with the UK and help lower prices on the UK high street, the British High Commission said.

The changes, announced as part of the UK’s wider Trade for Development offer, aim to support economic growth in partner countries including Sri Lanka while helping UK businesses and consumers access high-quality, affordable goods. This announcement builds on the UK’s Trade Strategy published last month.

New measures include simplifying rules of origin enabling more goods from countries such as Sri Lanka, Nigeria, and the Philippines can enter the UK tariff-free — even when using components from across Asia and Africa.

The announcement follows engagement with UK businesses and international partners, major importers and trade associations. This included the Sri Lankan government and the Joint Apparel Association Forum (JAAF).

The most significant positive change for Sri Lanka is that the rules of origin for the garments sector specifically will be liberalised. The changes will ensure that DCTS countries can now source their materials from a wider range of nations and will give manufacturers from countries such as Sri Lanka the opportunity to take advantage of 0% tariffs on garments. These changes are expected to be in place by early 2026.

The British High Commissioner to Sri Lanka Andrew Patrick said:

“This is a win for the Sri Lankan garment sector, and for UK consumers. With the UK being the second largest export market and garments making up over 60% of that trade, we know manufacturers here will welcome this announcement.

We want Sri Lanka to improve the utilisation of the UK’s Developing Countries Trading Scheme for a wider range of goods, not just garments. With the Sri Lankan government’s ambition to grow exports, and with the simplification of rules of origin for other sectors too, we strongly encourage more exporters to explore how they can benefit from the preferences offered by the DCTS.

The UK remains committed to working towards creating shared prosperity for both our countries.”

Responding to the announcement Secretary General of the Joint Apparel Association Forum (JAAF) Yohan Lawrence said:

“We warmly welcome the UK’s Trade Strategy. JAAF has worked very closely with the UK Government to work on solutions to improve utilisation of the Scheme. We are delighted that, for garments, it will now be possible to source more raw material regionally and continue to qualify for duty free export to the UK. This will be a game-changer for our trade with the UK under the DCTS.

We believe that the changes will also deliver significant improvements against the objectives of the Scheme. At around USD 675m in value, the UK is the second largest market for Sri Lanka Apparel.

 to 15% of apparel exports, while the industry supports a million livelihoods across the country. This announcement will help secure employment opportunities and ensure sustainable growth in Sri Lanka by allowing us to compete on equal terms with our major competitors, and we expect exports to increase significantly when the new rules come into effect, ” the High Commission said.