UK expands tariff-free access for SL garment exports

THE UK High Commission in Colombo said yesterday that new trade liberalisation rules coming into effect in 2026 will allow Sri Lankan garment manufacturers to source up to 100% of garment inputs from any country worldwide while maintaining tariff-iff-free access to the UK.

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The High Commission, in a statement, said the new rules will give Sri Lankan garment manufacturers “unprecedented gains”. By simplifying rules of origin, the reforms enable Sri Lankan manufacturers to compete more effectively in global markets while maintaining preferential access to the UK, it said. The news could not have come at a better time for Sri Lanka. The 20% reciprocal tariff unilaterally imposed by the US could cost the export sector $ 634 million and put nearly 16,000 garment sector jobs at risk, according to a recent Institute of Policy Studies (IPS) report. The think tank said the 20% US tariff translated to a 36.8% effective tariff on Sri Lankan garment exports.

The UK is the second-largest export market for Sri Lankan garments, accounting for close to 15% of total exports. Sri Lankan garment exports increased 8.95% in the first half of 2025 to $2.4 billion, with exports to the UK increasing 6.45% to $366 million.