Category: News

Sri Lankan garment manufacturers have now gained unprecedented access to UK markets under liberalised trade rules.

The changes allow manufacturers to source up to 100% of inputs for garments from any country worldwide whilst maintaining tariff-free access to the UK market. Fewer processing requirements now apply, removing the previous rule that two significant manufacturing processes must take place in Sri Lanka.

The liberalised rules also include the creation of an Asia Regional Cumulation Group of 18 countries applicable to all other exports from Sri Lanka. This enables Sri Lankan manufacturers to source materials from regional partners whilst maintaining preferential tariff benefits.

British High Commissioner Andrew Patrick said: “The reforms that are now in force demonstrate the UK’s commitment to creating shared prosperity through trade partnerships. By simplifying rules of origin, we are supporting Sri Lanka’s economic growth by improving market access to the UK and helping to further diversify exports. We recognise the Sri Lankan Government’s ambition for export growth and continue to advocate for improved utilisation of the scheme. Therefore, I invite exporters to explore how they can benefit from these reforms and access the zero tariffs that the Developing Countries Trading Scheme (DCTS) offers.”

Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence said: “The reforms to the UK’s DCTS remove previous restrictions requiring materials to be sourced regionally. Sri Lankan manufacturers can now compete equally by accessing global supply chains. The garment sector accounts for over 60% of Sri Lanka’s exports to the UK and supports 1 million livelihoods across the country. It is a significant boost for our export potential to an important market, and we are excited to work with buyers and manufacturers in creating significant growth from this opportunity.”

Council for Business with Britain (CBB) President Mark Surgenor said: “We are excited for the potential that the reforms will bring in enhancing the UK-Sri Lanka trade relationship. The most significant boost is to the garment sector. But with over 90% of products eligible for zero tariffs under the UK’s DCTS, we hope exports from other sectors will also seize the benefits arising from the creation of a larger number of regional countries from whom they can now source inputs. We are keen to see greater utilisation of the DCTS. This will form part of the CBB’s ongoing information sessions aimed at supporting Sri Lankan businesses in growing their trade with the UK.”

The changes respond to requests from many businesses and countries, including the Sri Lankan Government and the JAAF. The UK is Sri Lanka’s second largest garment export market at approximately $ 675 million in value, with exports expected to increase significantly under the new arrangements.

Sri Lanka Podujana Peramuna (SLPP) MP Namal Rajapaksa has emphasized the urgent need for stronger regional cooperation in South Asia, highlighting India’s central role in ensuring long‑term peace and stability.

Speaking on recent global and regional security developments, Rajapaksa noted that political turmoil in Bangladesh, Nepal, and Sri Lanka, often fueled by extremist elements, underscores the importance of collective action.

“In recent years, Bangladesh, Nepal and Sri Lanka have experienced periods of political turmoil, marked by public unrest and changes in government. At times, these disruptions have been supported and promoted by extremist elements. Addressing these challenges requires a collective commitment to counter extremism, prevent political violence, and safeguard minority rights. As such, South Asia requires greater regional coherence to withstand emerging crises and respond collectively to shared challenges. In this context, India’s leadership is central to maintaining long-term peace and stability in the region,” he said in a statement on ‘X’.

Rajapaksa added that upcoming elections in Bangladesh and Nepal offer an opportunity to reaffirm democratic legitimacy, strengthen regional security, and project South Asia’s influence internationally through unity and shared goals of growth and stability.

“With aligned goals focused on growth and stability, South Asia as a whole can project greater influence internationally, and in that process, regional unity remains crucial for long-term peace and coherence. The upcoming elections in Bangladesh and Nepal present a hopeful opportunity to reaffirm democratic legitimacy through free and fair elections that will contribute to further strengthening regional security,” he added.

Parliamentary pensions will be abolished once the relevant bill is passed into law, with no individual entitled to receive such benefits thereafter, Justice and National Integration Minister, Attorney-at-Law Harshana Nanayakkara, said today.

He made the statement after the bill to abolish pensions for Members of Parliament was presented for its first reading in Parliament today (7). The minister said pensions already received prior to the law coming into effect will not be affected.

Nanayakkara said the move addresses public opposition to MPs receiving pensions after a short period of service without making contributions, unlike ordinary public servants who must fulfil strict service requirements.

He said the reform was included in the government’s policy statement and reflects the National People’s Power government’s commitment to ending a privilege-based political culture

The US Ambassador to Sri Lanka Julie Chung will leave the island nation on January 16 after almost four years, as her tenure in Colombo ends.

“I have loved every moment of my time in Sri Lanka,” Chung said in a statement. “From day one, my focus has been to advance America’s interests—strengthening our security partnerships, expanding trade and investment, and promoting education and democratic values that make both our nations stronger.

“Together, we’ve built a relationship that delivers results for the American people and supports a free, open, and secure Indo-Pacific.”

Chung’s tenure began in February 2022.

She was here during the 75th anniversary of diplomatic relations between the United States and Sri Lanka in 2023, the return of US Peace Corps volunteers in 2024, and the 80th anniversary of the Fulbright Program.

She oversaw the Embassy’s move to its new facility in October 2022.

Under Chung, the US Embassy advanced initiatives to support Sri Lanka’s economic recovery, including US support for the IMF Extended Fund Facility and multiple US Department of Agriculture packages.

Deputy Chief of Mission Jayne Howell will serve as Chargé d’Affaires, until the arrival of a new US Ambassador.

Sri Lanka has signed a bilateral agreement with the Federal Republic of Germany as part of its ongoing external debt restructuring process, marking a significant milestone in the country’s efforts to restore debt sustainability and revive its economy.

The agreement, concluded after bilateral discussions following the Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC), provides for rescheduling outstanding debts, offering critical relief to Sri Lanka during its economic recovery phase.

The signing ceremony took place at the Ministry of Finance, where Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka, while Ms. Sarah Hasselbarth, Chargé d’Affaires a.i., represented the Federal Republic of Germany.

The estimated rescheduled debt under this agreement amounts to €188 million.

Officials noted that this agreement will strengthen the longstanding bilateral relationship between Sri Lanka and Germany, paving the way for deeper cooperation in the future. The Government of Sri Lanka expressed its sincere appreciation to Germany for its unwavering support and partnership.