Your Sri Lankan customer or buyer is asking for ESG information. Here is what the regulatory environment requires — and what they need from you.
Sri Lanka is a major exporter of garments, tea, rubber, and gems to EU, UK, and US markets. Sri Lankan SME exporters face ESG requirements from international buyers subject to CSRD, CSDDD, the UK Modern Slavery Act, and US supply chain legislation. Sri Lanka's domestic framework includes the Securities and Exchange Commission (SEC) sustainability reporting guidelines for listed companies and the Board of Investment (BOI) environmental and social standards for export-oriented enterprises. The EU GSP+ trade preferences that Sri Lanka benefits from create direct linkage between ILO labour standards compliance and market access.
Key regulations in Sri Lanka — ESG Supplier Guide
EU CSDDD — Corporate Sustainability Due Diligence Directive
EU companies importing from Sri Lanka — particularly in garments, tea, and rubber — will be required under CSDDD to conduct human rights and environmental due diligence across their supply chains. Sri Lankan suppliers will receive questionnaires covering labour standards, environmental management, and gender equality practices. The garment sector, which employs predominantly female workers, faces particular scrutiny on gender-based discrimination and workplace safety.
UK Modern Slavery Act 2015
UK companies importing from Sri Lanka must publish annual modern slavery transparency statements covering their supply chains. Sri Lankan garment, tea, and rubber suppliers are frequently included in UK company supply chain assessments. Evidence of fair wages, safe working conditions, freedom of association, and absence of forced or child labour is required.
SEC Sri Lanka Sustainability Reporting Guidelines
The Securities and Exchange Commission of Sri Lanka requires listed companies to publish sustainability reports aligned with GRI Standards. While this applies primarily to large listed companies, it establishes the reporting framework that international buyers use when assessing Sri Lankan suppliers and signals the direction of mandatory reporting for the broader business community.
EU GSP+ — Generalised Scheme of Preferences Plus
Sri Lanka's GSP+ trade preferences with the EU are conditional on effective implementation of 27 international conventions including all ILO core labour standards and UN human rights conventions. Failure to comply can result in GSP+ suspension — as occurred from 2010 to 2017. Sri Lankan exporters should treat ILO compliance as a market access requirement, not merely a buyer preference.
Sri Lanka PDPA & CERT-CC Sri Lanka Cyber Obligations
Sri Lanka's Personal Data Protection Act No. 9 of 2022 requires data controllers to notify the Data Protection Authority (DPA) of personal data breaches within 72 hours of becoming aware of the breach. CERT-CC Sri Lanka (Computer Emergency Readiness Team / Coordination Centre) coordinates national cyber incident response under the Sri Lanka CERT. The Information and Communication Technology Agency (ICTA) oversees national digital infrastructure. Suppliers processing Sri Lankan customer data must align incident response to the DPA 72-hour notification window.
What this means for you as a supplier
Sri Lankan exporters supplying EU and UK buyers are not directly regulated by CSRD or CSDDD, but your buyers are. They must assess your labour practices, environmental management, and human rights record as part of their own compliance. GSP+ trade preferences create a direct link between ILO compliance and EU market access. The garment sector faces the highest scrutiny — particularly on gender equality, freedom of association, and living wages. Tea and rubber exporters face increasing questions on pesticide use, land rights, and worker welfare on estates.
Key dates
Ongoing
UK Modern Slavery Act — UK buyers require supply chain transparency statements covering Sri Lankan suppliers
Ongoing
EU GSP+ — ILO compliance is a condition of preferential market access; subject to periodic review
July 2029
CSDDD Phase 1 — largest EU companies must conduct supply chain due diligence including Sri Lankan suppliers
2029
CSDDD Phase 3 — EU companies with ≥1,000 employees; most Sri Lankan exporters' EU buyers will be covered
Garment sector: the highest-scrutiny export industry
Sri Lanka's garment industry accounts for approximately 40% of export earnings and employs over 300,000 workers, predominantly women. EU and UK buyers in fashion and retail conduct the most detailed supply chain due diligence in this sector, covering factory safety, working hours, freedom of association, gender-based discrimination, and living wages. Sri Lanka's garment sector has a relatively strong compliance record compared to regional peers, but buyers are increasing the depth of their assessments in response to CSDDD obligations.
Tea and rubber estates: land rights and worker welfare
Sri Lanka's tea and rubber plantation sector faces specific scrutiny on the welfare of estate workers — historically a marginalised Tamil community — including housing conditions, access to healthcare and education, and living wages. EU buyers of Ceylon tea and natural rubber are increasingly including estate worker welfare questions in their supplier assessments. Plantation companies and exporters should be prepared to evidence worker welfare programmes, community investment, and land rights practices.
Last reviewed: April 2026. This guide is for general information only and does not constitute legal advice. Regulations change — verify current requirements with a qualified adviser.
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