The British government has issued a press release detailing the trade concessions it has granted to Sri Lanka. These trade concessions will be effective from early 2026.
Sri Lanka benefits from Enhanced Preference status under the UK’s Developing Countries Trade Scheme (DCTS).
Under the new rules, Sri Lankan garment manufacturers will be allowed to source up to 100 percent of their inputs for garment production from any country, while maintaining duty-free access to the UK.
The rule that two significant manufacturing processes (for example, fabric and garment production) must be carried out in Sri Lanka has been removed. According to current laws, Sri Lankan garments are eligible for duty-free access only if the relevant materials are sourced from the South Asian region.