Connect with us

Business

Leveraging the UK’s DCTS for sustainable growth amidst economic challenges

Published

on

Sri Lanka’s apparel industry, a cornerstone of the nation’s economy, finds itself at a critical juncture. As the sector continues to recover from the COVID-19 pandemic and navigates ongoing economic challenges, the UK’s Developing Countries Trading Scheme (DCTS) has emerged as a potential lifeline. However, this opportunity comes with its own set of hurdles, particularly for the small and medium-sized enterprises (SMEs) that are the backbone of the industry.

The DCTS replaces the previous Generalized Scheme of Preferences (GSP), offering Sri Lanka improved access to the UK market with over 99% of goods exported from Sri Lanka eligible for zero tariffs. Given that the UK is Sri Lanka’s second-largest market for apparel, this scheme could significantly boost export revenues and provide much-needed stability for the industry. Mara Waters, Director of Trade at the British High Commission, emphasizes the importance of the DCTS for Sri Lanka: “This scheme is not just about boosting trade; it’s about supporting sustainable development in partner countries. For Sri Lanka, it’s about building economic resilience, creating jobs, and ensuring that the benefits of trade reach the entire community, including those in the SME sector.”

In the first 11 months since the DCTS came into effect, from July 2023 to May 2024, the total value of goods imported from Sri Lanka to the UK reached £571 million. Of this, £304 million worth of goods benefited directly from the DCTS, underscoring the scheme’s significant role in supporting Sri Lankan exports during this period.

The DCTS is particularly beneficial due to its focus on accessibility. By reducing tariffs, liberalizing rules of origin, and simplifying trade conditions, the scheme aims to enhance Sri Lanka’s competitiveness in the UK market. For an industry that relies heavily on imported textiles and raw materials, the DCTS’s flexible rules of origin are a game-changer. These rules allow Sri Lankan manufacturers to source materials from other countries without losing their tariff-free status, making their products more competitive in the global market.

Yet, despite the clear advantages, the Sri Lankan apparel industry faces significant challenges in fully capitalizing on the DCTS. The Joint Apparel Association Forum (JAAF), which represents the sector, has raised concerns about the current rules of origin requirements under the DCTS. They argue that these rules, which are similar to those from the previous GSP+ scheme, limit the industry’s ability to maximize the scheme’s benefits.

One of the key recommendations from JAAF is the extension of cumulation—a trade mechanism that allows materials from multiple countries to be considered as “originating” when used in production. Sri Lanka is happy to note that the UK will be reexamining the Rules of Origin under the DCTS scheme and is confident that this would help Sri Lanka get a better utilization from the scheme. “If Sri Lanka can secure extended cumulation, or a change from the double transformation rules, this would increase the percentage of goods qualifying for duty-free imports, which currently stands at only about 50%. This would significantly enhance the benefits of the DCTS for Sri Lankan apparel manufacturers.” Yohan Lawrence, Secretary General of JAAF said.

Sri Lanka’s apparel industry, despite its potential, faces considerable challenges as it seeks to capitalize on opportunities presented by the DCTS. The ongoing economic crisis has severely impacted SMEs, limiting their ability to access capital necessary for upgrading facilities, adopting new technologies, and meeting international standards—efforts that are costly, particularly in transitioning to sustainable energy.

Sri Lanka’s strengths in design and the global shift towards sustainability offer a competitive edge in high-value markets like the UK and EU. By leveraging its sustainability narrative and reducing dependence on China, the country could unlock new growth opportunities.

New regulations from key markets like the UK, the EU and USA will continue to bring pressure on manufacturers to demonstrate greater transparence and traceability of the supply chain. This will add another layer of complexity for SMEs that may not be prepared for this change. Despite these challenges, the DCTS offers a critical opportunity for the sector. Success will depend on collaboration between the industry, government, and international partners to address these obstacles effectively.

The UK’s decision to reduce tariffs on additional products under the DCTS highlights the scheme’s potential. With Sri Lanka targeting to increase apparel exports, maintaining or increasing this volume is crucial as the country works through its economic recovery. However, the future remains uncertain, with the risk of losing DCTS Enhanced Preferences as economies develop.

In conclusion, Sri Lanka’s apparel industry is at a pivotal point. While the DCTS offers a promising path forward, overcoming the challenges ahead will require careful planning and strategic collaboration to ensure the sector continues to thrive and contribute to the country’s economic future.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Malaysia courts more Sri Lankan travelers as ‘Visit Malaysia 2026’ gathers steam

Published

on

Malaysian H.C. Badli Hisham Adam: ‘Fresh biz opportunities

Malaysia is intensifying efforts to attract more Sri Lankan travelers by promoting its diverse tourism offerings, strong air connectivity, Muslim-friendly facilities and expanding business partnerships ahead of the ‘Visit Malaysia 2026’ (VMY2026) campaign.

Addressing the Tourism Malaysia product presentation yesterday in Colombo, Malaysian High Commissioner to Sri Lanka Badli Hisham Adam said tourism remains one of the strongest pillars of the long-standing bilateral relationship between Malaysia and Sri Lanka, helping strengthen cultural understanding, business links and people-to-people ties.

The event, organised by Tourism Malaysia Chennai in collaboration with the High Commission of Malaysia in Colombo, brought together Malaysian tourism stakeholders, airline representatives, Sri Lankan travel industry professionals and members of the media to explore new business opportunities.

The High Commissioner said Sri Lanka continues to be an important source market for Malaysia, with growing numbers of Sri Lankan travelers seeking destinations that combine diversity, affordability, quality experiences and convenient connectivity.

“As part of ‘Visit Malaysia 2026’, we warmly invite Sri Lankan travelers to discover the richness of Malaysia, he said.

Highlighting Malaysia’s tourism strengths, the envoy said the country offers a wide range of attractions, including multicultural cities, UNESCO World Heritage Sites, pristine beaches, tropical rainforests, cool highlands and unique wildlife.

These are complemented by world-class shopping, family-friendly attractions, educational opportunities, wellness and medical tourism, business events and internationally renowned hospitality.

He also stressed Malaysia’s position as the world’s leading Muslim-friendly destination, supported by an extensive halal ecosystem with internationally recognised certification, halal-certified restaurants, easily accessible prayer facilities and family-oriented amenities across the country.

Despite ongoing geopolitical uncertainties around the world, the High Commissioner said Malaysia remains a stable, peaceful and welcoming destination for international travelers.

He urged Sri Lankan travel agents to strengthen collaboration with Malaysian tourism providers by developing innovative travel packages targeting leisure travelers, business visitors and event participants.

The presentation featured leading Malaysian tourism partners, including Wyndham Ion Majestic, Lotus Desaru, Key Term Holidays representing the Sabah Tourism Board and Asian Overland representing The PULSE Group, showcasing Malaysia’s diverse tourism experiences and investment in the Sri Lankan market.

The envoy also acknowledged the contribution of airline partners and the media in enhancing Malaysia’s visibility and improving travel connectivity between the two countries.

Looking ahead to ‘Visit Malaysia 2026’, he said the future growth of tourism would depend on stronger collaboration, innovation and meaningful partnerships between industry stakeholders.

He expressed confidence that closer cooperation between Malaysia and Sri Lanka would generate fresh business opportunities while encouraging more Sri Lankan visitors to experience Malaysia’s culture, diversity and hospitality.

The High Commissioner concluded by expressing hope that the networking session would lead to stronger commercial partnerships and contribute to the success of ‘Visit Malaysia 2026’, further deepening tourism and economic ties between the two friendly nations.

By Ifham Nizam

Continue Reading

Business

Women Empowered Global launches ‘Leadership Lab’

Published

on

Senela Jayasuriya, Founder and CEO of Women Empowered Global.

Women Empowered Global (WEG), a network of award‑winning female leaders, corporate CXOs and entrepreneurs, experts and thought leaders dedicated to empowering women from six continents, unveiled the ‘WEG Leadership Lab’, a 24‑week virtual intensive programme, commencing 26 September. The programme is designed exclusively for women leaders who are ready to accelerate their careers, amplify leadership visibility, and drive transformational growth.

The women‑only leadership experience breaks the mould of conventional training, offering a powerful blend of masterclasses, mentorship, and practical leadership tools tailored for rising leaders, managers, and senior professionals. Participants will gain international exposure, sharpen essential skills, and the opportunity to join a vibrant knowledge‑sharing community which fosters confidence, resilience, and impact.

“The WEG Leadership Lab is not for casual growth. It is for women who are serious about transforming their leadership journey,” said Senela Jayasuriya, Founder/CEO, Women Empowered Global. “By combining global expertise with local delivery, we are creating pathways for women across manufacturing, trading, finance, marketing, technology, and management, as entrepreneurs, business owners, fractional executives, or corporate leaders, to thrive and build a more inclusive leadership landscape.”

WEG’s platform facilitates international exposure and career development for professionals and connects more than 4,000 members worldwide. The Leadership Lab builds on WEG’s flagship initiatives, including the 1 Million Women in Power campaign, the African Women Leadership Forum, the Business Hub, and the Global Online Academy. The programme aims to deliver a transformative journey equipping women to step boldly into leadership roles locally and internationally.

Led by Senela Jayasuriya (MBA, UK), an internationally recognized and awarded leadership & empowerment coach and innovation partner, keynote speaker, and certified expert, WEG collaborates with DEI specialists, corporate boards, Business and HR leaders, to design programmes which advance women’s careers, leadership visibility, equity, and inclusion. To date, she has successfully delivered leadership development programmes to more than 20,000 professionals.

Continue Reading

Business

JKCG Auto and Green EV join forces to build Sri Lanka’s most expansive EV charging network

Published

on

John Keells CG Auto (JKCG Auto), the authorised distributor of BYD and Denza in Sri Lanka, has launched a strategic partnership with Green EV on 26th June 2026 to significantly expand the charging infrastructure available to its customers across the island. The collaboration, formalised through a Memorandum of Understanding (MOU), marks a pivotal step in JKCG Auto’s ongoing commitment to building a comprehensive and reliable New Energy Vehicle (NEV) ecosystem in Sri Lanka.

Through this partnership, BYD and Denza owners will gain seamless access to Green EV’s public charging network of 100+ DC fast chargers and 70 AC chargers, spanning 20 districts and all nine provinces of Sri Lanka, from Jaffna in the north to Hambantota in the south, and from Puttalam on the northwest coast to Trincomalee and Ampara on the eastern seaboard, encompassing a mix of 40kW, 60kW, and 120kW fast-charging infrastructure. The network has been designed to ensure that customers can charge conveniently and confidently, whether in the heart of Colombo or in suburban and outstation communities, removing one of the most commonly cited barriers to EV adoption in Sri Lanka. Further strengthening customer confidence, Green EV has partnered with SLIC to provide a comprehensive insurance cover of LKR 100 million for every Green EV charging station, offering protection against potential damages and ensuring complete peace of mind for every user.

The initiative reflects JKCG Auto’s broader strategy to invest in the foundations of sustainable mobility, ensuring that the transition to electric vehicles is supported not only by world-class vehicles, but by a dependable ecosystem that addresses the practical needs of everyday ownership.

“If the future of mobility in Sri Lanka is going to be electric, success will hinge on how accessible we are able to make the actual vehicles, as well as the enabling infrastructure around them. JKCG Auto is proud to partner with other visionaries like Green EV to ensure that we eliminate range anxiety, so that every customer – whether in Colombo or anywhere in Sri Lanka will have the confidence to go electric,” JKCG Auto Chief Executive Officer, Charith Panditharatne.

Continue Reading

Trending