The Joint Apparel Association Forum (JAAF), representing Sri Lanka’s apparel industry, has expressed strong support for the UK Government’s recent announcement regarding the Developing Countries Trading Scheme (DCTS) benefits. Set to launch in early 2026, the DCTS introduces a more flexible framework for rules of origin, which is anticipated to provide considerable advantages to the textile and apparel sectors.
One of the significant reforms involves merging and expanding existing regional cumulation groups in Asia, creating a new Asia Regional Cumulation Group that includes 18 countries, such as Central Asian nations, Mongolia, and Timor Leste. This change allows Sri Lankan garment manufacturers to source up to 100% of their inputs from any global marketplace while maintaining zero-tariff access to the UK.
This increased flexibility marks a substantial improvement from previous agreements, reducing processing restrictions and positioning Sri Lankan apparel manufacturers on par with countries benefiting from “Comprehensive Preferences” under the DCTS.
The UK represents a vital market for Sri Lanka’s apparel sector, with exports rising by 20.4% to $67.33 million in June 2025, according to JAAF data. These relaxed rules are expected to enhance the competitive edge of manufacturers, enable diversification of sourcing strategies, and ensure stable access to UK consumers.
JAAF Secretary General Yohan Lawrence commented, “This reform is a timely recognition of Sri Lanka’s role as a resilient and responsible sourcing destination. By removing restrictions on input sourcing, the UK has levelled the playing field for our manufacturers, giving them the flexibility to deliver greater value to global brands and UK consumers alike.”
The collaborative efforts of the UK High Commission, the Sri Lankan Department of Commerce, and local industry stakeholders have played a key role in facilitating this significant change, further highlighting the Developing Countries Trading Scheme benefits. Ultimately, the DCTS aims to boost exports, improve operational efficiency, and reinforce the longstanding trade ties between Sri Lanka and the UK. As Sri Lanka’s top export sector directly supports over 350,000 jobs and indirectly benefits more than a million individuals, the move towards liberalized trade is vital for the country’s economic recovery and sustained growth.
