ECONOMYNEXT – Sri Lanka’s Apparel Exporters Association (SLAEA) said it had hosted a forum to update exporters, including those in sectors like tea and rubber, on the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) where compliance is required to continue to ship goods to the region.
The event focused on the implications of CSDDD for Sri Lanka’s export economy, SLAEA said.
“It marks a new chapter in how international trade will be shaped and governed,” SLAEA Chairperson Rajitha Jayasuriya said.
“It places responsibility and legal obligation not only on large EU companies, but by extension on every partner along the value chain—be it manufacturers, suppliers, raw material providers, or other supporting services—to proactively identify, prevent, and address human rights and environmental risks within their operations.”
Sri Lanka’s continued access to the GSP Plus scheme depends on the country’s demonstrated commitment to human rights, environmental standards, and good governance, she pointed out.
CSDDD compliance should be seen not just as a regulatory hurdle but a strategic advantage, EU Deputy Ambassador Lars Bredal said.
“Ethical business is good business,” he said. “Those who prepare early will be better positioned to attract investment and forge lasting partnerships with European buyers.”
He highlighted EU policies, such as the deforestation regulation, that will impact other Sri Lankan exports like rubber and timber.
The implementation timeline for the CSDDD has been extended to 2028, giving companies time to build capacity.
Due diligence has shifted from a voluntary CSR initiative to a binding legal obligation, governance specialist Shyamali Ranaraja said, with suppliers outside the EU expected to comply due to cascading requirements from European buyers.
“This isn’t a philosophical debate. This is about staying in business.” From outsourced logistics to staff canteens, no part of the supply chain is exempt, she warned.
Panelists, including Vajira Ellepola (Director General – EFC), Eranthi Premaratne (Consultant – Sustainable Business), Mahesh Yellai (Chief Product Officer – TrusTrace), and moderator Navindu Munidasa (Manager Supply chain and strategy Development – MAS Holdings), agreed that while the transition may be complex, it represents a opportunity for Sri Lanka to reinforce its global credibility and strengthen long-term buyer trust. (Colombo/Jul30/2025)
