Sri Lankan Apparel Industry to “Navigate New EU Sustainability Laws”
September 27, Colombo (LNW): Sri Lanka’s apparel industry, known for its high-quality and ethically produced garments, faces new challenges and opportunities as it adapts to the European Union’s (EU) latest sustainability and labeling requirements.
This shift in regulations comes as the EU, a critical market for Sri Lankan exports with over 448 million consumers, moves toward greater transparency and sustainability across global supply chains.
Sri Lanka is already ahead of the curve in some respects. Its apparel industry has successfully piloted the ADB-GS1 Digital Link technology, showcased at COP28, which allows seamless exchange of product data while minimizing environmental impact.
This initiative will help the country meet the EU’s evolving requirements, supporting the industry’s shift toward sustainability
The EU has long been a leader in promoting environmentally and socially responsible production practices. Recent regulatory frameworks such as the EU Textile Regulation, the Digital Product Passport (DPP), and the German Supply Chain Due Diligence Act are set to reshape the apparel sector.
These policies aim to ensure that goods entering the EU market meet strict environmental, ethical, and human rights standards.
One of the most significant changes is the introduction of the Digital Product Passport (DPP). By 2027, all apparel products sold in the EU must include a QR code providing detailed information about the product’s origin, environmental impact, and supply chain.
This digital labeling initiative aligns with the growing consumer demand for transparency and sustainable consumption.
Additionally, the German Supply Chain Due Diligence Act requires that businesses adhere to human rights and environmental standards throughout their entire supply chain.
Non-compliance could result in substantial fines or exclusion from key markets such as Germany, emphasizing the need for Sri Lankan exporters to adapt quickly.
Malintha Gajanayake, Head of Corporate Affairs and Export Promotions at the Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka), notes that while these new regulations require significant investment in technology and supply chain transparency, they also provide an opportunity for Sri Lanka to stand out in a highly competitive market by showcasing its commitment to sustainable manufacturing practices.
However, these regulations also present major challenges, particularly for smaller manufacturers.
Meeting the EU’s stringent requirements demands substantial upgrades to technology and infrastructure, particularly in terms of digital labeling and supply chain tracking.
The cost of compliance—both in terms of product modifications and international marketing—can strain smaller companies, while the varying regulations across EU member states add another layer of complexity.
Despite these hurdles, there are notable opportunities for growth. Sri Lanka’s strong reputation for ethical production positions it well to capitalize on the new EU standards. By complying with sustainability regulations, Sri Lankan apparel manufacturers could enhance their marketability, particularly to European retailers that prioritize ethical supply chains.
