EDB Promotes UK Market Expansion via DCTS 📈

The Sri Lanka Export Development Board (EDB) conducted an awareness session on 11 February 2026 to help exporters leverage the UK’s Developing Countries Trading Scheme (DCTS). • Key Market Opportunity The UK remains Sri Lanka's second-largest export destination. Under the DCTS (effective from 1 Jan 2026), over 92% of Sri Lankan product lines qualify for duty-free access, enhancing competitiveness in a major global market. • Sector Breakthrough: Apparel & Textiles Apparel manufacturers—representing 73% of exports to the UK—now enjoy a "game changer" advantage. They can source up to 100% of raw materials (including synthetic fabrics) globally while maintaining zero-tariff access, removing previous regional sourcing constraints. • Regional Sourcing & Diversification Beyond apparel, sectors like ICT/BPM, tea, and rubber benefit from the Asia Regional Cumulation Group. This allows Sri Lanka to source inputs from 18 countries and still qualify for preferential UK tariffs, supporting supply chain flexibility. • Strategic Impact • Tariff Savings: Estimated potential to save over £69 Mn annually if fully utilized. • Trade Growth: Experts project an incremental export boost of US$ 150 Mn to US$ 300 Mn in the medium term. • Simplified Procedures: Removal of the "double transformation" rule and streamlined documentation to reduce compliance costs.