A major trade breakthrough promises fresh momentum for Sri Lanka’s garment industry, strengthening exports, competitiveness, and long-term access to one of its most valuable markets.
Sri Lankan garment exporters will gain duty-free access to the United Kingdom from January 1, marking a significant boost for the country’s apparel sector and its global trade prospects.
The British High Commission confirmed that reforms introduced under the UK’s Developing Countries Trading Scheme will take effect from the start of the new year. These changes are expected to improve market access for Sri Lankan apparel exports and enhance the industry’s ability to compete in international markets.
The UK currently stands as Sri Lanka’s second largest garment export destination, with exports valued at approximately US$ 675 million. With the removal of duties, industry stakeholders anticipate a notable increase in export volumes, improved price competitiveness, and stronger demand from British retailers.
Under the new trade arrangements, Sri Lankan garment manufacturers will also be permitted to source raw materials and inputs from regional partners while still maintaining preferential tariff benefits. This flexibility is expected to reduce production costs, improve supply chain efficiency, and attract further investment into the sector.
These new trade concessions grant Sri Lankan manufacturers a range of unprecedented privileges, reinforcing the country’s position as a reliable apparel sourcing hub. As global buyers seek stability and value, the duty-free access is likely to translate into growth, employment opportunities, and long-term resilience for Sri Lanka’s garment industry.
