📈 UK DCTS Reforms: Sri Lankan Exports Set for 10% Growth

The UK’s Developing Countries Trading Scheme (DCTS) reforms, effective 1 January 2026, are set to significantly enhance Sri Lanka’s trade competitiveness by allowing duty-free exports to the UK even when using globally sourced fabrics. • Sector Impact: The apparel & textiles industry is expected to see production volume growth in excess of 10%. Major UK retailers, including Tesco and Next plc, have reaffirmed their commitment to sourcing from Sri Lanka under the new tariff-free rules. • Logistics & Supply Chain: Significant boosts are anticipated for the logistics sector, particularly in multi-country consolidation (MCC) and quality assurance. Operations managed by Maersk, Speedmark, and Aitken Spence Logistics are already scaling to handle increased volumes. • Strategic Shifts: • Fabric Sourcing: Manufacturers are now actively expanding their global mill base across Southeast Asia and Europe to incorporate diverse materials into UK-bound collections. • Sustainability: High-end facilities are adopting low-emission freight operations, such as battery-powered forklifts, to meet UK retailers’ low-carbon supply chain requirements. • Economic Contribution: The scheme acts as a catalyst for job creation across transport, packaging, and warehousing units, while strengthening long-term UK–Sri Lanka trade relations and export diversification.