‘s Upgraded DCTS Rules of Origin Allow SL Manufacturers to Source Up to 100-pct of Inputs Globally

Sri Lankan garment manufacturers will soon have “unprecedented access” to UK markets due to liberalized trade rules set to take effect in early 2026. The changes to the UK’s Developing Countries Trading Scheme (DCTS) will allow more garments manufactured in Sri Lanka to be exported to the UK duty-free.

Under the new rules, Sri Lankan manufacturers can source up to 100% of their garment inputs from any country worldwide while maintaining tariff-free access to the UK. The upgrades also remove the requirement that two significant manufacturing processes, such as the manufacturing of the fabric and the garment, must take place in Sri Lanka.

The British High Commissioner to Sri Lanka, Andrew Patrick, stated that the changes are expected to have a “significant positive impact” on the country’s garment sector and help lower prices for consumers in the UK. The President of The Council for Business with Britain, Mark Surgenor, also expressed support for the changes, noting that they would allow more of Sri Lanka’s garment exports to qualify for zero tariffs.

Sri Lanka is a beneficiary of the UK’s DCTS as an ‘Enhanced Preference’ country, which offers significant tariff reductions across various product categories. The reforms are also expected to enable Sri Lankan manufacturers to compete more effectively in global markets.