FINANCIAL CHRONICLE – A coalition of over 50 leaders from both the public and private sectors has convened to enhance Sri Lanka’s National Eco-Labelling Framework (NELF). This initiative is being facilitated by the European Union’s Green Recovery Facility and is carried out in collaboration with Expertise France and the Ministry of Environment.
The stakeholder consultation titled “National Eco-Label Sri Lanka: Framework Strengthening and Harmonisation” gathered representatives from various sectors, including government agencies, industry associations, eco-labelling scheme developers, certification bodies, technical experts, and development partners. The aim was to identify strategies to fortify a reliable system that promotes sustainable products, responsible business practices, and informed consumer choices.
This initiative is aligned with Sri Lanka’s commitment to transition towards a more sustainable economy by enhancing policies, technical standards, and market mechanisms that promote sustainable production and consumption.
“As sustainability gains prominence in global trade, establishing credible and transparent environmental standards is crucial. The European Union, through the Green Recovery Facility, is aiding Sri Lanka in developing the institutional and technical capacities necessary to enhance sustainable production, boost consumer confidence, and create new market opportunities for Sri Lankan enterprises,” stated Dr. Johann Hesse, Head of Cooperation at the EU Delegation to Sri Lanka and the Maldives.
Globally, eco-labelling is increasingly recognized as an essential tool for consumers, businesses, and governments aiming to more reliably identify environmentally friendly products. Currently, approximately 1.8 million products worldwide bear recognized eco-labels. However, with over 300 eco-labels estimated to exist in the United States alone and around 60% of European consumers struggling to differentiate credible environmental claims from misleading ones, the urgency for trustworthy and transparent certification systems has never been greater.
Enhancing the national eco-labelling system will aid Sri Lankan consumers in making well-informed purchasing decisions while encouraging companies to adopt sustainable production methods. It will also support local industries in fulfilling the increasing environmental standards demanded in international markets and mitigate the risks of greenwashing by establishing clear, science-based, and transparent environmental standards.
Sri Lanka launched its National Eco-Labelling Framework in 2022 as a basis for developing a nationally recognized eco-labelling system. Several sector-specific initiatives are already in place, including the Green Label by the Green Building Council of Sri Lanka and energy rating programs led by the Sri Lanka Sustainable Energy Authority. However, disparities in criteria, limited national recognition, and the need for greater integration with Green Public Procurement underscore the necessity of a unified national approach.
The ongoing EU-sponsored Green Recovery Facility initiative aims to analyze existing eco-labelling schemes, align technical standards, enhance governance frameworks, and create a practical implementation roadmap. Additionally, the program includes targeted capacity-building efforts to assist current and prospective eco-labelling scheme owners in fortifying best practices and enhancing scheme resilience to mitigate the risk of greenwashing. A proposed tiered recognition system was also discussed at the workshop, offering businesses at any stage of their sustainability journey a viable path to national recognition, with further stakeholder input expected in the coming months.
During the consultation, participants provided feedback on three primary areas: readiness and capacity-building within industries, priority sectors and product categories, and the future framework and implementation roadmap for the National Eco-Labelling Framework. Representatives from government bodies, industry organizations, certification agencies, and technical institutions examined challenges, opportunities, and actionable steps necessary for the framework’s success. Three main priorities emerged from the discussions: aligning eco-labelling with Green Public Procurement to stimulate market demand, enhancing testing and verification capabilities, and implementing a phased rollout of the new system.
This consultation builds upon earlier assessments and stakeholder discussions related to the initiative, including evaluations of governance structures, verification processes, and existing eco-labelling practices. The next steps will concentrate on bolstering technical capacity, refining harmonized criteria, and facilitating the rollout of a reliable national eco-label for Sri Lankan products. (Colombo/Aug13/2026)
