Business

Sri Lankan garment manufacturers have gained significant access to the UK market thanks to new trade rules, according to the British High Commission in Colombo. The updated regulations allow these manufacturers to source all their materials from any country around the world while still enjoying tariff-free access to the UK. This change means there are fewer processing requirements, as the earlier rule that dictated two major manufacturing steps had to occur in Sri Lanka has been eliminated. Additionally, the new rules include the establishment of an Asia Regional Cumulation Group made up of 18 countries, which applies to all other exports from Sri Lanka. British High Commissioner to Sri Lanka, Andrew Patrick, stated, “The reforms now in place show the UK’s dedication to fostering shared prosperity through trade partnerships. By making rules of origin simpler, we are aiding Sri Lanka’s economic development by enhancing market access to the UK and promoting a wider range of exports.” He also acknowledged the Sri Lankan government's goals for export growth and encouraged exporters to take advantage of these changes to benefit from the zero tariffs provided by the Developing Countries Trading Scheme (DCTS). Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), expressed his support for the new rules, saying, “The reforms to the UK’s Developing Countries Trading Scheme eliminate the previous limitations on sourcing materials regionally. This allows Sri Lankan manufacturers to compete fairly by tapping into global supply chains.”