SL urged to build shared compliance framework for export survival

Legal expert Shyamali Ranaraja calls for national action on EU due diligence law; proposes collaborative model involving Govt., JAAF, EDB, NCE and others to build reporting and compliance mechanism Suggests revisiting idea of Sri Lanka-specific compliance standard, possibly under SLSI, to meet evolving global due diligence expectations Highlights exporters' risk exclusion from EU supply chains unless urgent, coordinated action is taken Notes cost and complexity of compliance too high for MSMEs to manage alone, calling for collective responsibility Points to importance of centralised platforms for monitoring environmental and human rights standards, enabled by digital tools like blockchain, QR traceability and digital product passports Asserts exporters not wait for EU buyers to demand documentation, as retrospective compliance will be expected

- BY CHARUMINI DE SILVA

AS exporters face mounting pressure to meet the European Union's (EU) Corporate Sustainability Due Diligence Directive (CSDDD), legal expert Attorney-at-Law Shyamali Ranaraja recently made a strong case for a shared national compliance infrastructure to support the country's predominantly small and medium-sized manufacturing sector.

Delivering a comprehensive analysis of the implications of the CSDDD during a multi stakeholder awareness initiative organised by the Sri Lanka Apparel Exporters Association (SLAEA), she warned that exporters, particularly in key industries such as apparel, risk being sidelined from European supply chains unless urgent and coordinated action is taken.

With the Directive already underway and expected to be fully enforced by 2027, she said the time to prepare is now.

Noting that the cost and technical complexity of compliance could overwhelm micro, small and medium enterprises (MSMEs), Ranaraja proposed a collective solution.

"Sri Lanka is mainly composed of MSMEs. There are a few big players, but you have MSMEs who cannot afford this compliance initially. This is where collaboration becomes essential between the Government, the Joint Apparel Association Forum (JAAF), and other industry associations to develop a common mechanism where compliance becomes a shared responsibility and an internal reporting mechanism, maybe with the Export Development Board (EDB), the National Chamber of Exporters (NCE)—all these units coming together," she said.

Ranaraja also noted that one idea worth revising is the development of a Sri Lanka-specific compliance standard.

"We explored developing a Sri Lanka standard in the early 2000s, where the Sri Lanka Standards Institution (SLSI) also came on board. But it was rejected by international buyers at the time. However, given today's advancements in oversight and transparency, it may be time to reconsider this approach," she stressed.