EU standards key to boosting exports and investments in Sri Lanka: Envoy

Delegation of the European Union Sri Lanka Deputy Ambassador Lars Bredal 

• EU Deputy Ambassador Lars Bredal says stable, ethical and transparent environments essential for European investors seeking credible trade partners
• Opines sustainability is not only ethical path forward, but strategic opportunity for growth
• Notes European Green Deal shaping global trade rules, including directives like CSDDD, CSRD and EUDR
• Stresses to support, not burden, partners, with compliance offering global competitive advantages
• Commends Sri Lanka for stakeholder readiness, institutional professionalism and proactive engagement

 By Charumini de Silva

The Delegation of the European Union in Sri Lanka Deputy Ambassador Lars Bredal recently said that aligning with EU standards on sustainability and due diligence is essential for boosting exports and attracting more European investments into the country. 

“European investors are looking for stable, transparent, and ethical environments. By meeting these standards and credibility, Sri Lanka can strengthen its export capacity and become a more attractive destination for investment,” he said at an EU due diligence awareness program organised by the Sri Lanka Apparel Exporters Association (SLAEA).

He noted that the EU Generalised Scheme of Preferences Plus (GSP+) trade scheme gives preferential access to countries that commit to implementing 27 key international conventions, including on human rights, labour rights, and environmental standards. 

Sri Lanka benefits significantly from the EU’s GSP+ scheme, which gives preferential access to over 6,000 export products. In 2024, Sri Lanka exported € 2.7 billion worth of goods to the EU, mostly thanks to the GSP+, whilst importing around € 1.1 billion from the EU. 

“We would like to see both trade flows increase and we believe that aligning with EU standards will give a competitive edge,” he added.

He also noted that sustainability is not only the ethical path forward, but a strategic opportunity for growth. “Those who invest now in traceability, ethical supply chains, and Environmental, Social, and Governance (ESG) practices will not only retain market access, but also thrive in a world where sustainability is increasingly non-negotiable,” he said.

The Deputy  Ambassador asserted that ‘green business is good business,’ drawing parallels with Denmark’s transformation into one of the world’s wealthiest nations per capita through climate-friendly policies and early investment in sustainable technologies. 

“Although sustainability is often framed as a moral necessity, the Danish and the wider European experience shows it is a driver of economic strength,” he said, adding that aligning with environmental and human rights standards is fast becoming a condition—not a choice—for global market access.

Sri Lanka faces the growing influence of the European Green Deal, a sweeping policy agenda that commits the EU to become the world’s first climate-neutral region by 2025 and to cut emissions by at least 55% by 2030. This included laws covering various sectors like transport, energy, and industry, as well as regulatory frameworks like the Corporate Sustainability Reporting Directive (CSRD), the EU Deforestation Regulation (EUDR), and the Corporate Sustainability Due Diligence Directive (CSDDD). 

Under the EUDR, set to come into effect in 2026, he said fortunately for Sri Lanka, the regulation is not a significant issue in the local rubber sector. “It is more about certifying good practices already in place,” he said.

Despite the regulations being ambitious, Deputy Ambassador Bredal stressed that the EU is not trying to ‘overburden’ its trade partners. 

He pointed out that companies which can prove ethical and sustainable sourcing will gain a competitive edge not just in the EU, but globally. “We are not just talking about obligations—we are talking about opportunities in economics, ethics, and the environment. I believe Sri Lanka is well positioned to seize them,” he stated.

The Deputy Ambassador commended Sri Lankan stakeholders for their preparedness, praising the professionalism of local institutions and the clarity of presentations shared during the awareness session.