Sticky trouble for F&B sector as new labelling rules kick in

• Decision to not issue an amended gazette by authorities brings new rules into effect today
• Most manufacturers have held off on taking costly label changes in expectation of a consolidated update to rules
• Industry says not practical to comply with all changes proposed

The new food labelling and advertising regulations coming into force today risk turning the sweet gains sour for the local food and beverage (F&B) sector, the industry stakeholders said, describing the rules as impractical and a potential disruptor for the manufacturers across the board.
The rules, enforced by both the Health Ministry and Consumer Affairs Authority, mandate a wide range of product declarations, including nutritional details, allergen warnings and multilingual labelling, regardless of packaging size or product category.
“There is no positive response from the Health Ministry with regard to the requests different associations within the industry have made on the proposed labelling regulations,” an industry stakeholder told Mirror Business, requesting anonymity.
While some concessions were discussed earlier with the Ceylon Chamber of Commerce, the stakeholder shared that no amended gazette has been issued to date. The gazette should have been issued before July 30. Event at the time of print, industry sources confirmed they had not yet received an official notice.
Most manufacturers have held off on taking the costly label changes, in expectation of a consolidated update to the rules.
The sector has repeatedly pointed out multiple operational concerns, with the key issues being lack of testing infrastructure for certain nutritional metrics such as added versus naturally occurring sugars. The existing packaging formats, particularly those under 200 square centimetres, cannot accommodate all required information, especially in three languages.
“It is not practical to comply with all the changes proposed. The sheer volume of information required makes it particularly impossible to fit everything onto smaller packaging. The best example is a one oz bottle of flavours and colouring,” another stakeholder said.
The industry representatives also called for balanced regulation across all consumer goods. They reiterated that the restrictions on food advertising such as the ban on using mascots, children or images of lactating mothers, do not apply to personal care products targeting similar demographics, raising concerns about regulatory consistency.
A separate concern is the unclear definition of exemptions for the “handcrafted” or “cottage industry” products. 
While such exemptions were floated by the Health Ministry in May, the stakeholders asserted that the ambiguity around the classification risks creating an uneven playing field, where even the large companies making artisanal products could be excluded.
Beyond the compliance challenges, the sector questioned the broader public health focus of the new framework. They noted that factors such as sedentary lifestyles, stress and overuse of agrochemicals in farming, which also contribute to the rising non-communicable diseases, remain largely unaddressed in policymaking.
According to the Central Bank data cited by the industry, the packaged food accounts for less than 10 percent of Sri Lanka’s sugar imports, yet remains the primary focus of regulatory scrutiny.
Despite absorbing the steep cost increases over the past two years, including a recent hike in electricity tariffs and minimum wages, the manufacturers said they have not revised the prices. With the new labelling rules now in effect, that may change, the stakeholders said.