Sri Lanka’s garment industry, reeling from a 30% US tariff announced by President Donald Trump, received a lifeline on Friday as the UK granted tariff-free access to its clothing exports under the Developing Countries Trading Scheme (DCTS). “This is a win for the Sri Lankan garment sector and UK consumers,” said British High Commissioner Andrew Patrick, noting the UK’s position as Sri Lanka’s second-largest export market after the US.

The UK’s liberalized rules of origin, effective from July 10, 2025, allow Sri Lankan manufacturers to source materials regionally while qualifying for zero tariffs, boosting competitiveness. The move, expected to take effect by early 2026, could increase exports valued at $675 million annually, supporting nearly a million livelihoods.

Conversely, the US tariff, set to begin August 1, 2025, threatens Sri Lanka’s $1.9 billion apparel exports to the US, which account for 40% of its garment trade. Industry leaders warn of job losses, with competitors like Vietnam facing lower 20% tariffs. Sri Lanka’s trade chamber urged urgent negotiations, while Treasury Secretary Harshana Suriyapperuma emphasized ongoing talks for a “mutually beneficial” resolution.

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