German Supply Chain Act reforms and EU GSP+: What SL’s exporters need to know

Markus Löning

Colombo will host a timely and high-level discussion on the latest reforms to the German Supply Chain Act (Liefer kettensorgfaltspflichtengesetz – LkSG) and its intersection with the EU GSP+ programme and the upcoming EU supply chain law. 

The session, led by Markus Löning, Founder and Managing Director of Löning – Human Rights and Responsible Business and former German Human Rights Commissioner, will take place on September 12, 2025, at Atrium, Cinnamon Grand.

The German government recently published a draft amendment to the LkSG, introducing two key changes:

• The abolition of the reporting obligation, previously suspended by BAFA but now legally confirmed.
• A narrowing of sanction mechanisms, applying only to companies that neglect preventive or remedial measures or fail to set up complaint mechanisms.

While these amendments reduce administrative burdens, all core obligations on human rights due diligence, risk management and documentation remain firmly in place. 

Moreover, the forthcoming EU Corporate Sustainability Due Diligence Directive (CSDDD) will soon replace national laws like the LkSG, creating a harmonised compliance framework across Europe.

Why it matters for Sri Lanka

Sri Lanka’s export industries—particularly apparel, tea, rubber, fisheries and ICT services—are heavily dependent on the EU markets, with Germany being one of Sri Lanka’s largest trade partners in Europe. The continuation of GSP+ tariff concessions is closely linked to compliance with the EU sustainability and human rights standards.

This session will unpack

• EU GSP+ programme: How reforms in European trade policy shape Sri Lanka’s export competitiveness.
• German Law on Corporate Due Diligence in Supply Chains (LkSG): Practical implications for Sri Lankan exporters supplying to German and European buyers.
• EU supply chain law (CSDDD): The future European-wide due diligence regime and what it means for Sri Lanka beyond 2026.

Löning is an internationally recognised expert on responsible business conduct and human rights in trade. He has advised businesses, governments and organisations in over 70 countries, helping exporters adapt to evolving global compliance standards.

His experience as Germany’s Human Rights Commissioner and as a Bundestag member allows him to bridge European policymaking and global trade realities, making his insights especially relevant for Sri Lankan exporters and policymakers.