UK launches its Developing Countries Trading Scheme in Sri Lanka

■ „New scheme expected to diversify and deepen supply chains and reduce cost of exporting to UK „■ New scheme designed to grow free and fair trade with 65 countries

The British High Commission in Colombo yesterday announced the launch of the UK government’s new Developing Countries Trading Scheme (DCTS) in Sri Lanka.

The new scheme will provide the Sri Lankan and UK businesses with a fresh opportunity to diversify and deepen supply chains and reduce the cost of exporting to the UK.

“We hope businesses will take advantage of the great opportunities we have highlighted through our events this week,” said British High Commissioner Sarah Hulton OBE.

According to Nigel Huddleston, UK Minister of State at the Department for Business and Trade, the DCTS will support businesses by giving them the tools to export duty free to the UK, opening up markets and boosting consumer choice.

“We want to go bigger and further with our global trade links and the DCTS enables the UK to achieve this with developing countries,” he said in a statement to the media.

The new scheme has been designed to grow free and fair trade with 65 countries, including Sri Lanka, thereby creating jobs and boosting their economies. The DCTS offers one of the most generous sets of trading preferences in the world and demonstrates the UK’S commitment to building long-term, mutually beneficial relationships with countries like Sri Lanka.

The launch event was delivered in partnership with the Council for Business with Britain – the UK-SRI Lanka bilateral trade association and was attended by Finance State Minister Shehan Semasinghe, Central Bank Governor Dr. Nandalal Weerasinghe and senior officials from the Commerce Department, Export Development Board for Sri Lanka and Board of Investment of Sri Lanka.

At the launch event, the UK officials showcased high potential value chains and products that can benefit from the new scheme, which was based on research into the UK retailers’ and consumers’ buying considerations as well as insights from Sri Lankan producers, trade programmes and policymakers.

The DCTS will replace the UK Generalised Scheme of Preferences and will come into force in 2023. Under the scheme, Sri Lanka is eligible for zero tariffs on 92 percent of products. Over 150 additional products will be brought into scope of the new scheme, including milled grains, pet food products and dairy products.