DCTS boost: Shipments heading to UK under new tariff-free scheme

British High Commissioner Andrew Patrick and Industries and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe recently visited apparel logistics and quality assurance facilities North of Colombo to witness shipments being prepared for export to the United Kingdom.

The visit follows reforms to the UK’s Developing Countries Trading Scheme (DCTS) which came into force on 1 January 2026. 

These changes enable Sri Lankan manufacturers to source fabrics globally while maintaining duty-free access to the UK market, strengthening the country’s position as a premier garment sourcing destination and boosting confidence among UK apparel brands and the country’s logistics sector, contributing to job creation and economic growth.

The delegation visited NEXT Sourcing – Central Inspection Facility (CIF) which manages quality assurance based in the facility managed by Speedmark who also manage a multi country consolidation (MCC) for NEXT Sourcing and is one of the largest sourcing hubs within NEXT plc UK. The duty-free access under the DCTS is expected to accelerate production volumes and enhance competitiveness with expected growth in excess of 10%.

NEXT Sourcing Sri Lanka Director Wilhelm Elias said: “In preparation for the recently announced DCTS reforms, which enables worldwide fabrics to be imported into Sri Lanka and finished garments exported duty-free to the UK, the fabric sourcing and design teams at Next Sourcing have been actively expanding the mill base, travelling globally and attending major fabric fairs across Southeast Asia and Europe over the past six months. These fabrics are being incorporated directly into upcoming collections to ensure the benefits of the DCTS reforms are passed on to UK customers immediately. We will continue to build on the momentum going into 2027 and manage the anticipated growth within our existing garment supply chain.” 

The delegation then toured Maersk Sri Lanka’s advanced logistics operations, which plays a key role in export consolidation for Tesco’s apparel shipments and those of several other UK apparel brands from Sri Lanka. 

Tesco, one of Britain’s largest retail chains, reiterated its long-standing confidence in Sri Lanka’s apparel sector, noting the country’s reliability and world-class manufacturing capabilities.

Tesco Sri Lanka Head of Sourcing operations Azmina Kareem said: “Tesco welcomes these reforms which will help Sri Lankan manufacturers develop their businesses and source fabrics globally duty-free and look forward to working closely with our suppliers to further develop our relationships across Sri Lanka utilising their strong manufacturing standards.”

Both Speedmark and Maersk operations are supported by Aitken Spence Logistics. These operation support thousands of direct and indirect jobs across transport, packaging, and warehousing units while highlighting the strength of Sri Lanka’s logistics and supply chain ecosystem, which is expected to benefit from increased export volumes driven by the DCTS. The delegation also observed low-emission freight operations including battery-powered forklifts and carbon management systems, aligning with UK retailers’ low-carbon supply chain priorities.

As UK brands continue expanding their sourcing from Sri Lanka, the DCTS scheme stands as a catalyst for long-term economic growth, export diversification, and strengthened UK–Sri Lanka trade relations.

Source - Dailyft