Exporters face new EU sustainability rules

Asia Pacific Regional Manager Dr. Rukshan Gunatilaka

Assistant Manager Business Communications and Marketing Dulini Wijeratne

Operations Manager Lakshan Wickramaarachchi

• Compliance deadlines loom
• Peterson Solutions Sri Lanka’s ‘ESG Reporting Basics: Why, When & How’ webinar on July 29

The Sri Lankan exporters targeting the European Union (EU) are being urged to prepare immediately for sweeping new sustainability regulations that will fundamentally change how businesses market products, manage supply chains and demonstrate environmental and social responsibility.

Beginning September 27, 2026, companies selling goods and services into the EU will face tougher scrutiny, under the Empowering Consumers for the Green Transition Directive (EmpCo), which is designed to eliminate misleading environmental claims commonly known as ‘greenwashing’. 

The businesses found making unsubstantiated sustainability claims could face penalties of up to two million euros or 4 percent of annual turnover in the relevant EU member state, together with reputational damage and possible restrictions on market access.

According to Peterson Solutions Sri Lanka, many exporters remain unaware that the new rules extend well beyond the product labels, applying equally to websites, social media, advertisements, sustainability reports and other promotional material carrying environmental claims.

“The era of simply saying a product is ‘green’, ‘eco-friendly’ or ‘sustainably produced’ is coming to an end,” said Peterson Solutions Sri Lanka Asia Pacific Regional Manager Dr. Rukshan Gunatilaka (PhD). 

Besides EmpCo, the exporters must also prepare for the Packaging and Packaging Waste Regulation, which begins applying from August 12, 2026, with further requirements phased in through 2030 and the EU Deforestation Regulation, whose due diligence obligations take effect for larger companies on December 30, 2026.

Peterson Solutions Sri Lanka Assistant Manager Business Communications and Marketing Dulini Wijeratne said, “Many established exporters already regard sustainability compliance as an essential part of doing business in Europe.”

To support organisations preparing for these evolving requirements, Peterson Solutions Sri Lanka will conduct a complimentary webinar titled ‘ESG Reporting Basics: Why, When & How’ on July 29, 2026, from 3:30 p.m. to 4:30 p.m. (Sri Lanka time). 

Interested participants may register at: https://app.livestorm.co/peterson-solutions/esg-reporting-basics-why-when-and-how