Sri Lanka Apparel Exporters Association (SLAEA) Chairperson Rajitha Jayasuriya has called for urgent and coordinated national action in response to the European Union’s (EU) new Corporate Sustainability Due Diligence Directive (CSDDD), warning that it marks a fundamental shift in how international trade will be governed in the future.
Speaking at a multi-stakeholder awareness session organised to discuss the implications of the Directive, Jayasuriya emphasised that the CSDDD’s impact will extend far beyond the apparel sector, affecting Sri Lanka’s entire export economy. The Daily FT reports.
“This isn’t just another regulation—it is a structural transformation in global trade, placing legal obligations across the entire value chain,” she explained.
The Directive mandates that large EU companies, and by extension, their global suppliers, must identify, prevent, and mitigate human rights abuses and environmental harm within their operations. Jayasuriya pointed out that the framework will significantly impact key Sri Lankan export industries, such as apparel, tea, rubber, and manufacturing.
She further warned that with Sri Lanka’s heavy reliance on trade preferences and external markets, the stakes are extremely high.
“Our continued eligibility for trade schemes like the EU Generalised Scheme of Preferences Plus (GSP+) depends on our demonstrable commitment to the principles that the CSDDD upholds, such as human rights, environmental protection, and good governance. This Directive reinforces the need for a proactive—not reactive—stance,” she said.
While acknowledging that Sri Lanka has built a strong reputation for ethical and sustainable manufacturing, particularly in the apparel sector, Jayasuriya stressed that individual excellence is no longer sufficient.
“We can no longer rely on isolated examples of best practices. Every stakeholder across every sector must embrace responsibility and implement practical, measurable changes,” she added.
What is the EU Corporate Sustainability Due Diligence Directive (CSDDD)?
The EU’s CSDDD is a new law that requires large European companies and their supply chains worldwide to carry out due diligence to identify, prevent, and address risks related to human rights abuses and environmental harm within their operations, subsidiaries, and value chains. Companies must establish policies and procedures to:
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Integrate due diligence into corporate strategy
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Identify actual or potential adverse impacts on human rights and the environment
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Prevent or mitigate such impacts
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Monitor the effectiveness of their measures
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Publicly communicate how they address these risks
The CSDDD covers areas such as child labour, forced labour, workers’ rights, and environmental damage, and imposes legal liability on companies that fail to act responsibly. The Directive is designed to strengthen human and ecological rights protections globally by making EU companies accountable for their supply chains.
