Tuesday Jan 20, 2026
Tuesday Jan 20, 2026
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Sri Lanka Apparel Exporters Association Chairperson Rajitha Jayasuriya
By Charumini de Silva
Sri Lanka Apparel Exporters Association Chairperson Rajitha Jayasuriya has said revised rules of origin under the UK Developing Countries Trading Scheme (UKDCTS) have emerged as a “game changer” for the country’s apparel industry.
She said the move has placed the country on a more competitive footing with least developed country (LDC) exporters, opening a significant opportunity to expand exports to the UK market.
“The revised rules have effectively levelled the playing field for Sri Lanka, with benefits now comparable to those enjoyed by countries within the LDC bloc. Over 90% of Sri Lankan apparel exports to the UK are now eligible for zero tariffs, a shift that is expected to create room for diversification into new product categories while improving price competitiveness,” Jayasuriya told the Daily FT.
A key development under the revised framework is the allowance for 100% globally sourced raw materials, which Jayasuriya said places Sri Lanka on equal footing with major competitors such as Bangladesh and Cambodia.
“This change is expected to deliver sharper pricing, shorter lead times, and greater supply chain flexibility for exporters, strengthening Sri Lanka’s appeal to UK buyers seeking agility and responsiveness,” she added.
As full tariff-free access came into effect from 1 January 2026, the industry sees a limited but significant window to accelerate growth in the UK market.
Jayasuriya estimated the incremental export potential at between $ 150 million and $ 180 million and long-term potential at far greater, provided manufacturers move quickly to align their strategies with the new trade environment.
“Sri Lanka exports around $ 600 million per annum to the UK and 50% qualifies. If that doubles due to the DCTS opportunity, then it is an extra $ 300 million, bringing us closer to $ 1 billion. This is the potential that we need to now capitalise on,” she explained.
Sri Lanka’s recent performance in the UK market underscores this potential. According to the latest trade statistics available up to October 2025, the country’s apparel exports to the UK registered a 29% year-on-year (YoY) growth, outpacing growth rates achieved by both India and Bangladesh. The performance is also comparable to growth recorded by Southeast Asian peers such as Vietnam and Cambodia, signalling a strengthening competitive position despite broader global market volatility.
However, Jayasuriya stressed that policy advantages alone would not be sufficient to secure long-term gains, noting the need for a clear strategic game plan to convert trade preferences into sustained market share.
“A key to this strategy is strengthening buyer confidence through predictability and compliance, particularly at a time when UK retailers are reassessing sourcing models in response to tighter environmental, social, and governance requirements,” she pointed out.
She said Sri Lanka must clearly communicate its strengths in quality assurance, ethical manufacturing, and transparent compliance systems, while demonstrating reliability in delivery performance, audit readiness, and traceability. These factors, she noted, would become increasingly decisive as the UK moves to strengthen due diligence and sustainability-related regulations.
The revised UKDCTS framework also presents an opportunity to position Sri Lanka as a preferred partner for near-market fashion replenishment. With tariff-free access and flexible Rules of Origin, Sri Lanka can cater to UK retailers facing shorter trend cycles by offering lower minimum order quantities, faster style reactivation, and support for in-season product drops. This positioning is expected to resonate particularly with fashion and athleisure brands seeking speed and flexibility.
Jayasuriya also highlighted the importance of deepening buyer relationships beyond transactional sourcing.
“Closer engagement through co-creation initiatives, including shared design capsules, material innovation, collaborative forecasting, and aligned sustainability roadmaps, could anchor longer-term partnerships,” she said, adding strategic multi-year agreements focused on capacity security, price stability, and joint innovation were likely to offer more resilient volume growth than short-term order wins.
Jayasuriya outlined that material innovation and capability upgrading would be critical as global sourcing becomes permissible. “The next phase of competitiveness lies in advanced textiles such as performance knits, recycled synthetics, cellulosic fibres, and technically engineered garments. By combining innovative materials with strong garment engineering capabilities, Sri Lanka could strengthen its position in higher-value segments such as performance wear, athleisure, intimates, and technical apparel,” she added.
The Chairperson also underscored the need for stronger UK market intelligence and competitive benchmarking. Proactively tracking shifts in consumer demand, retailer performance, and competitor sourcing patterns would enable manufacturers to anticipate changes, align cost structures, and identify emerging category opportunities at an early stage.
To maximise the benefits of the revised UKDCTS regime, Jayasuriya called for a more coordinated industry-wide approach.
She proposed the creation of a unified exporter task force focused on the UK market, bringing together apparel associations and key exporters to streamline advocacy, buyer engagement, market promotion, and compliance support, particularly in relation to DCTS documentation requirements.
“Such a collective effort would enhance Sri Lanka’s visibility and credibility at a national level, helping to convert favourable trade policy changes into sustained export growth in one of the country’s most important apparel markets,” Jayasuriya said.
