Sri Lankan garment exports will receive full duty-free access to the United Kingdom from 1 January 2026, following reforms to the UK’s Developing Countries Trading Scheme (DCTS), the British High Commission in Colombo announced on Thursday.

Under the revised scheme, Sri Lankan apparel manufacturers will be allowed to source up to 100% of raw materials from anywhere in the world while continuing to benefit from zero tariffs when exporting to the UK. The reforms also remove the earlier requirement for two substantial manufacturing processes to be carried out in Sri Lanka.

The changes are expected to provide a significant boost to Sri Lanka’s apparel exports to the UK, which is currently the country’s second-largest garment export market, with annual shipments valued at around $675 million.

The revised rules form part of broader changes to the DCTS, which grants preferential market access to 65 developing countries.

British High Commissioner to Sri Lanka Andrew Patrick said the reforms demonstrate the UK’s commitment to strengthening trade partnerships and supporting Sri Lanka’s economic growth. By simplifying rules of origin, the UK is improving market access for Sri Lankan exporters and supporting efforts to diversify exports, he said, urging manufacturers to make full use of the scheme’s benefits.

Council for Business with Britain President Mark Surgenor said the reforms would further strengthen UK–Sri Lanka trade relations, with positive impacts extending beyond the apparel sector. He noted that more than 90% of products are now eligible for zero tariffs under the DCTS, creating new opportunities for exporters in other industries.

The reforms were introduced following requests from businesses and partner countries, including the Sri Lankan government and the Joint Apparel Association Forum, and are expected to increase utilisation of the DCTS in the coming years.