Business

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

Published

2 years ago

2024/09/4

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.

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Business

USA–Sri Lanka Chamber of Commerce plans New York campaign to promote Tourism and Business

Published

5 mins ago

2026/10/19

Thilina Walpola

The initiative will provide Sri Lankan businesses with a vital platform to introduce their products and services to the American market

Timing aligns with national policy discussions

By Sanath Nanayakkare

The USA–Sri Lanka Chamber of Commerce is exploring an innovative promotional initiative to showcase Sri Lanka’s tourism, cultural heritage, and commercial opportunities in the heart of New York City during the upcoming Christmas and holiday season.

The proposed campaign aims to bring Sri Lanka’s unique identity to one of the world’s most internationally recognized cities through a mobile digital billboard featuring high-quality photographs and videos highlighting the island’s natural beauty, rich heritage, and diverse commercial offerings. Designed to capitalize on New York City’s significant holiday-season foot traffic, the initiative will reach American consumers, international tourists, and potential business partners.

The digital showcase will feature pristine beaches, scenic mountains, waterfalls, tea plantations, wildlife, ancient cities, Buddhist heritage, traditional arts, authentic cuisine, and modern attractions, positioning the country as a premier international travel destination. An interactive QR code linking to comprehensive tourism information will also be incorporated, allowing viewers to directly explore travel opportunities.

Beyond destination promotion, the initiative provides Sri Lankan businesses with a vital platform to introduce their products and services to the American market. Enterprises representing Ceylon tea, spices, food products, gems and jewellery, apparel, handicrafts, wellness, hospitality, and tourism will have the opportunity to showcase their brands alongside the broader national campaign.

The Chamber notes that this effort will be particularly beneficial for small and medium-sized enterprises (SMEs) seeking greater international exposure, brand recognition, and commercial partnerships in the United States. By integrating tourism promotion with commercial visibility, the project aims to strengthen Sri Lanka’s international image while supporting trade, investment, and business development.

Operating under the central message of “Discover Sri Lanka. Experience Sri Lanka. Visit Sri Lanka,” the campaign presents the island as a destination defined by natural beauty, cultural richness, distinctive products, and entrepreneurial potential. More information on the initiative is accessible at www.usaslcc.org.

Tourism sector stakeholders have welcomed the move, noting that private-sector-led initiatives of this nature bypass cumbersome bureaucratic procurement procedures and complex tender processes typically associated with state-run promotional campaigns abroad.

The timing aligns with recent national policy discussions regarding tourism promotion. Participating in a Fireside Chat at the inauguration of the Sri Lanka Economic and Investment Summit 2026, organized by the Ceylon Chamber of Commerce, President Anura Kumara Dissanayake emphasized that a proper procurement mechanism needs to be established before acquiring tourism promotional concepts, recommending a performance-based system where agencies are compensated according to verified growth in tourist arrivals.

Business

Seylan Bank partners Colombo Motor Show 2026 as official banking and leasing partner

Published

13 mins ago

2026/10/19

Thilina Walpola

For 10th consecutive year

Seylan Bank PLC, the Bank with a Heart, has reaffirmed its commitment to supporting Sri Lanka’s automotive industry by partnering with the 20th edition of the Colombo Motor Show 2026 as the Official Banking & Leasing Partner for the 10th consecutive year. This makes Seylan Bank the longest-standing partner of the Colombo Motor Show, further reflecting its longstanding association with one of Sri Lanka’s most prominent automotive exhibitions. The four-day exhibition is scheduled to take place from 20th to 23rd November 2026 at the Bandaranaike Memorial International Conference Hall (BMICH), marking the first time the Colombo Motor Show will be held as a four-day event.

As one of Sri Lanka’s leading international motor and motor accessories exhibitions, the Colombo Motor Show will bring together vehicle enthusiasts, prospective buyers, industry professionals and automotive service providers. The 2026 edition is expected to feature over 200 trade stalls covering motor vehicles, accessories, spare parts, lubricants, tyres, batteries, leasing facilities and other motor-related services.

Through its continued partnership, Seylan Bank will showcase a comprehensive range of financial solutions designed to support customers in meeting their personal and business needs, with a particular focus on Seylan Leasing facilities. Visitors to the exhibition will have the opportunity to receive on-the-spot leasing evaluations and expert guidance from Seylan Leasing Specialists, helping them explore vehicle financing options conveniently during the event.

Business

WCIC sharpens focus on scaling women-owned businesses

Published

15 mins ago

2026/10/19

Thilina Walpola

WCIC Office Bearers

The Women’s Chamber of Industry and Commerce (WCIC) is sharpening its focus on helping women entrepreneurs move beyond business creation towards sustainable growth, as it expands its membership, partnerships and advocacy footprint.

WCIC Chairperson Gayani de Alwis, concluding her second tenure, highlighted the Chamber’s efforts had increasingly centered on creating pathways for women to translate entrepreneurial ambition into viable enterprises and, importantly, build those businesses for the longer term.

“Ultimately, our impact is not measured by the number of programmes we conducted, but by the women whose businesses grew, whose voices became stronger, whose horizons expanded and whose contribution to the economy became greater,” she said addressing the WCIC 41st Annual General Meeting (AGM) held on 22 September for which the Chief Guest was Canadian High Commissioner to Sri Lanka and the Maldives Isabelle Martin.

The focus has included a special initiative for female university students with an entrepreneurial mindset, regional chapter initiatives in the Northern Province, capacity-building programmes and the inaugural ‘Beyond Ramp Up’ workshop.

The Chairperson said these initiatives were designed to move women “from aspiration to enterprise, and from enterprise to sustainable growth”, signaling a broader focus on strengthening the progression of women entrepreneurs beyond the initial stages of business formation.

WCIC recorded a 20 percent increase in membership during the period with membership crossing 460 and expanded its ecosystem through a series of strategic partnerships.

Internally, WCIC moved to strengthen its governance framework, revising its Articles of Association to ensure regulatory compliance and introducing a Code of Conduct and Board self-assessment. Clearer organisational roles, job descriptions and performance targets were also introduced as part of efforts to strengthen accountability and professionalise its operations.

Reflecting on her tenure, the Chairperson said the period had been about building a stronger, more connected and professionally governed organisation, while converting its wider ambitions into tangible opportunities for women in business.