New regulations governing the EU Packaging Waste and Green Claims Directives are set to come into effect in September 2026, posing a potentially significant non-tariff barrier for Sri Lankan exporters.
With less than three months remaining before the rules take effect, the Sunday Times Business learns that some exporters may not yet be fully prepared for these changes affecting entry into the European Union (EU) market. The EU remains the largest export destination for Sri Lankan products, particularly garments.
The EU Packaging and Packaging Waste Regulation, adopted in December 2024 and which entered into force on February 11, 2025, replaces the previous Packaging and Packaging Waste Directive. According to Dilhan Fernando, Chairman of Dilmah Tea Company and an expert on sustainable business practices, the regulation introduces sustainability and labelling requirements across the entire packaging lifecycle—from production to waste management—in line with the EU’s circular economy objectives.
He noted that new labelling and digital requirements will increase costs, as Sri Lankan exporters will need to invest in updating packaging labels, potentially including QR codes and sorting information, to comply with the updated EU standards.
The new requirements include recyclability standards, minimum recycled content, labelling obligations, packaging minimisation, reuse and refill requirements, a ban on food packaging containing PFAS (per- and polyfluorinated alkyl substances) above set concentration limits from August 2026, and Extended Producer Responsibility (EPR), which requires companies to account for the full lifecycle of their packaging.
Meanwhile, the European Commission announced its intention to withdraw the Green Claims Directive (GCD) proposal in June 2025, following pressure from the European People’s Party. Although the formal withdrawal has not yet been finalised and trilogue negotiations have been cancelled, the Empowering Consumers for the Green Transition Directive (ECGT) is already in force. From September 2026, it will prohibit generic green and ESG claims without independent certification, as well as offset-based “climate neutral” product claims across the EU, extending beyond traditional green claims.
Mr. Fernando explained that Sri Lanka exports a wide range of goods to the EU—including tea, apparel, spices, rubber products, and seafood—and that these regulations will directly affect them.
He further noted that packaging redesign will likely be necessary, with exporters required to ensure packaging is recyclable, minimised, and free from prohibited substances such as PFAS in food contact materials. Products that do not comply with Packaging and Packaging Waste Regulation (PPWR) standards risk being rejected at EU borders.
He added that green marketing claims must be properly substantiated. Even though the Green Claims Directive is currently paused, the ECGT significantly tightens what exporters can claim regarding environmental performance, particularly in relation to climate and carbon labelling. Claims such as “climate neutral” and other generic sustainability labels will require strong, evidence-based justification.
“There is time pressure. With August 2026 fast approaching, exporters supplying EU buyers should already be in discussions with their buyers and reviewing their packaging specifications,” he said.
