Sri Lanka fashion exports to UK expected to rise on tariff-free access

Core Insights - The UK's reforms to the Developing Countries Trading Scheme (DCTS) allow Sri Lankan fashion manufacturers to source up to 100% of materials globally while maintaining zero tariffs on exports to the UK [1][2] - The changes are a response to requests from various stakeholders, including the Sri Lankan government and the Joint Apparel Association Forum, aimed at enhancing trade opportunities [2][4] Group 1: Trade Benefits - Sri Lanka's garment sector, which constitutes over 60% of its exports to the UK, is expected to benefit significantly from these reforms, potentially boosting exports valued at approximately $675 million [3][4] - The liberalized rules include the establishment of an Asia Regional Cumulation Group of 18 countries, allowing Sri Lankan manufacturers to source materials from regional partners while retaining preferential tariff benefits [2][4] Group 2: Economic Impact - The reforms are anticipated to enhance the UK-Sri Lanka trade relationship, with expectations of increased exports not only in the garment sector but also across other sectors eligible for zero tariffs under the DCTS [4] - Sri Lanka's global apparel exports rose by 5.42% year-over-year in the first 11 months of 2025, reaching $4.57 billion, indicating a positive trend in the industry [4]