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JAAF hails UK origin rule reforms for Sri Lankan apparel exports

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JAAF hails UK origin rule reforms for Sri Lankan apparel exports



The Joint Apparel Association Forum (JAAF) today welcomed the UK Government’s announcement of liberalised rules of origin under the Developing Countries Trading Scheme (DCTS), which will come into effect in early 2026.

The reforms will allow Sri Lankan manufacturers to source up to 100 per cent of inputs for garments from any country worldwide while continuing to enjoy tariff-free access to the UK market. This represents a significant upgrade to existing trade arrangements, reducing restrictions on processing and aligning Sri Lanka’s apparel sector with the same rules available countries enjoying ‘Comprehensive Preferences’ under the DCTS.

Sri Lanka’s Joint Apparel Association Forum hailed the UK’s plan to liberalise rules of origin under the DCTS from 2026, allowing garment makers to source 100 per cent of inputs globally while retaining tariff-free UK access.
The move boosts competitiveness, jobs, and exports, with officials noting stronger trade ties and benefits for brands, consumers, and Sri Lanka’s economy.

The UK remains one of Sri Lanka’s most important export destinations for apparel. The simplified rules will enable manufacturers to compete more effectively in global markets, diversify sourcing strategies, and maintain consistent access to UK buyers. The changes will also support Sri Lanka’s role as a trusted, value-added supplier within global fashion supply chains, JAAF said in a release.

“This reform is a timely recognition of Sri Lanka’s role as a resilient and responsible sourcing destination. By removing restrictions on input sourcing, the UK has levelled the playing field for our manufacturers, giving them the flexibility to deliver greater value to global brands and UK consumers alike. We see this as an opportunity to expand trade, strengthen industry competitiveness, and secure more jobs and livelihoods across Sri Lanka’s apparel sector,” JAAF secretary general Yohan Lawrence, said welcoming the announcement.

JAAF acknowledged the constructive engagement between the UK High Commission, the Department of Commerce, and the Sri Lankan apparel industry in advocating for this change. The new rules are expected to boost exports, improve efficiency, and strengthen the long-standing trade partnership between the UK and Sri Lanka.

The apparel industry is Sri Lanka’s largest export earner, directly employing over 350,000 people and supporting the livelihoods of more than a million across its value chain. Liberalised trade arrangements such as this ensure the sector continues to drive the country’s economic recovery and long-term growth.

“We are pleased to confirm further details of the reforms to the DCTS. I know from my discussions with the JAAF, Sri Lankan manufacturers and UK brands that the changes are likely to have a significant positive impact on garment sector in Sri Lanka, while helping lower prices on the UK high street,” said British high commissioner to Sri Lanka Andrew Patrick, as quoted by local media.

“The upcoming changes to the DCTS will further strengthen Sri Lanka’s exports to the UK. This is a particular success story for Sri Lanka’s garment industry where the proposed changes will mean that more of Sri Lanka’s garment exports to the UK could qualify for zero tariffs. The Council for Business with Britain is very supportive of these changes and looks forward to continuing our work with businesses to promote trade between the UK and Sri Lanka,” Mark Surgenor, president of the council for business with Britain, added.

The Developing Countries Trading Scheme provides preferential trading arrangements for 65 developing countries. Sri Lanka currently enjoys Enhanced Preference status, offering tariff reductions across multiple product categories.

In addition to the garment-specific reforms, the UK announced in June the creation of a new Asia Regional Cumulation Group of 18 countries that Sri Lanka can source from for other eligible products. Inputs sourced from within this group will be treated as originating in Sri Lanka, supporting greater value addition and wider access to preferential tariffs, according to local media reports.

Fibre2Fashion News Desk (HU)



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IMF to give specific attention to low-income, vulnerable nations

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IMF to give specific attention to low-income, vulnerable nations



The International Monetary Fund (IMF) will continue to support countries in their efforts to promote stability and growth, including through sound macroeconomic policies, domestic resource mobilisation and better governance, with specific attention to low-income and vulnerable countries, Mohammed Aljadaan, Minister for Finance of Saudi Arabia and chair of its International Monetary and Financial Committee (IMFC) said at the 53rd meeting of the committee.

Such countries include fragile and conflict-affected states and small developing states, especially where debt and financing pressures are mounting, he noted in his statement.

The IMF will continue to support countries in their efforts to promote stability and growth, including through sound macroeconomic policies, domestic resource mobilisation and better governance.
The chair of its International Monetary and Financial Committee said this support will include specific attention to low-income and vulnerable countries.
The committee called for enhanced debt transparency.

“We remain committed to further improving debt restructuring processes, including under the Common Framework, building on the progress already achieved, and advancing the work at the Global Sovereign Debt Roundtable (GSDR) to ensure debt restructurings are delivered in a predictable, timely, orderly and coordinated manner,” he said.

The committee called for enhanced debt transparency from all stakeholders, including private creditors.

“We will advance structural reforms to enable private sector-led investment, increase productivity, safeguard energy security, and elevate medium-term growth prospects,” added Aljadaan.

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Germany firms raise investment plans, uncertainty persists: ifo

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Germany firms raise investment plans, uncertainty persists: ifo



Companies in Germany have revised their investment plans upwards for the current year, with the ifo investment expectations index rising to 0.2 points in March from -3.1 points in December 2025.

“The improved order situation in industry has brightened sentiment somewhat. However, as a result of the Iran war, energy costs have risen sharply, and uncertainty among companies has also increased. That runs counter to a stronger economic recovery,” said Timo Wollmershauser, head of forecasts at ifo.

Firms in Germany have raised investment plans, with ifo expectations rising to 0.2 points in March from -3.1 in December 2025.
Industry led gains, especially non-energy sectors, while energy-intensive segments and chemicals remained weak.
Services showed modest optimism, but trade stayed pessimistic.
Rising energy costs and geopolitical uncertainty temper recovery.

The most notable rise in the willingness to invest was in industry. Expectations rose to +0.1 points in March, up from -6.9 points in December. The outlook improved particularly strongly in non-energy-intensive industries, where significantly more companies were planning to expand their investments this year, ifo said in a press release.

In energy-intensive industries, however, the willingness to invest remains subdued. At -9 points in March, the balance remained virtually unchanged from December (-8.9 points). In the chemical industry, investment expectations even declined further, from -15.8 to -16.2 points.

Overall, the corresponding balance in manufacturing rose from -4.1 to +1.2 points. “Companies across all sectors also want to invest more in software. The growing use of artificial intelligence is likely to play a role in that,” said ifo economic expert Lara Zarges.

In trade, companies remain the most pessimistic. The balance of investment expectations stood at -9.6 points in March, virtually unchanged from the level in December. Service providers, on the other hand, confirmed their slightly positive outlook from December: Their investment expectations improved from +1.1 to +2.8 points.

The points for the ifo investment expectations indicate the percentage of companies that intend to increase their investments on balance.

Fibre2Fashion News Desk (SG)



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Global energy growth slows to 1.3% in 2025: Report

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Global energy growth slows to 1.3% in 2025: Report



Global energy demand growth moderated to 1.3 per cent in 2025 amid a complex economic and geopolitical backdrop, while electricity consumption continued to expand strongly, according to the latest Global Energy Review by the International Energy Agency (IEA).

The report highlighted that although overall energy demand growth slowed compared with 2024 and remained slightly below the previous decade’s average, electricity demand rose by around 3 per cent, driven by increased usage across buildings, industry, electric vehicles, and data centres.

Global energy demand growth slowed to 1.3 per cent in 2025, while electricity demand rose around 3 per cent, driven by EVs, industry, and data centres, according to IEA.
Solar PV led supply growth for the first time.
Oil demand grew modestly, and coal growth slowed.
CO2 emissions rose slightly.
Renewables and nuclear expansion highlighted an accelerating shift towards cleaner energy systems.

Solar photovoltaic (PV) emerged as the largest contributor to global energy supply growth for the first time, accounting for over 25 per cent of the increase. Natural gas followed with a 17 per cent share, while renewables and nuclear together met nearly 60 per cent of additional demand.

Global oil demand rose modestly by 0.7 per cent, reflecting the continued expansion of electric vehicles, with sales surpassing 20 million units in 2025. Coal demand growth slowed overall, with declines in China offset by increases in the United States due to high natural gas prices.

“Global energy demand continued to increase in 2025 against a complex economic and geopolitical backdrop, with one trend unmistakeable: the expanding electrification of economies,” said Fatih Birol, IEA executive director.

He added that electricity consumption was growing much faster than overall energy demand, with one energy source outpacing all others. He noted that solar PV accounted for over a quarter of global energy demand growth for the first time, followed by natural gas, and added that countries prioritising resilience and diversification would be better placed to manage volatility and ensure secure, affordable energy.

Regional trends varied significantly. Energy demand growth in the United States rose sharply, supported by industrial activity, data centre expansion, and colder weather, while China’s growth slowed to 1.7 per cent due to rising renewable adoption and improved efficiency.

Global energy-related CO2 emissions increased marginally by around 0.4 per cent. Emissions declined in China and remained flat in India, aided by renewable deployment and favourable weather conditions, while advanced economies recorded higher emissions growth due to colder winter conditions.

In the power sector, solar PV generation surged by a record 600 terawatt-hours, marking the largest annual increase for any electricity generation technology. Battery storage emerged as the fastest-growing segment, with around 110 gigawatts of new capacity added, while nuclear energy also saw renewed momentum with over 12 gigawatts of new reactors under construction.

The IEA noted that cumulative deployment of low-emissions technologies since 2019 now offsets fossil fuel consumption equivalent to the entire energy demand of Latin America, underscoring the accelerating transition towards cleaner energy systems.

Fibre2Fashion News Desk (SG)



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