The introduction of stringent food labeling, advertising, and nutritional standards in Sri Lanka, effective 1 January 2025, has stirred up significant concerns within the local food and beverage (F&B) sector.(Food industry) These rules, intended to enhance consumer protection and promote healthier eating habits, have faced criticism for being unclear, costly, and impractical—especially for small and medium enterprises (SMEs).
Key Aspects of the New Regulations
The updated regulations mandate:
- Nutrition labeling on all food products.
- Trans-fat content testing at a significant cost of Rs. 150,000 per product.
- A ban on advertising featuring children under 12 years old.
- Prohibition of mascots or animal imagery on product packaging.
These measures aim to align with international food safety standards and protect consumers, but they have left many industry players scrambling to adapt.
Industry Concerns Over Implementation and Costs
Stakeholders in the F&B sector have highlighted several challenges with these regulations:
- High Compliance Costs
Businesses, particularly SMEs, are struggling with the financial burden of compliance. Trans-fat testing costs Rs. 150,000 per product, and the limited number of testing facilities in the country further complicates matters. - Unclear Guidelines
Companies report a lack of clarity on specific clauses, such as those governing deceptive brand names. The absence of updated gazettes and detailed instructions has led to confusion and fears of arbitrary enforcement. - Packaging Challenges
The new rules exempt products with packaging under 100 square centimeters from mandatory labeling, but this threshold excludes many single-serve items like yogurt cups and sachets. Industry groups are calling for an increase in the exemption limit to 200 square centimeters and for the adoption of global standards for trans-fat detection. - Language Requirements
The requirement to display warnings in all three national languages—Sinhala, Tamil, and English—is particularly burdensome for smaller products like essences and spices sold in compact packaging. Businesses are requesting voluntary warnings and streamlined language requirements.
Advertising Restrictions Raise Questions
The ban on advertisements featuring children under 12 years has been particularly controversial. Industry representatives argue that this rule disrupts family-oriented marketing strategies and sponsorships for cultural events. Additionally, monitoring advertisements on foreign cable TV channels poses a significant challenge.
“How will authorities regulate ads on international cable channels?” questioned one industry spokesperson, highlighting the practical difficulties in enforcing this rule.
Mascot and Imagery Restrictions
The prohibition on mascots and animal imagery has also sparked confusion. Manufacturers are seeking clarity on whether generic animal images, such as cows on milk powder packaging, will be allowed. The lack of detailed guidance has left many businesses unsure of how to proceed.
Calls for Collaboration and Practicality
Industry leaders have repeatedly emphasized the need for meaningful dialogue with the government. They argue that impractical rules could harm the F&B sector’s global competitiveness and hinder its recovery following economic challenges in recent years.
“During consultations in 2014, international experts suggested flexible approaches adopted by countries like India and Singapore. Unfortunately, these recommendations were not implemented,” one stakeholder lamented.
In a letter sent to the government in June 2024, major industry associations—including the Lanka Confectionery Manufacturers Association (LCMA) and the Sri Lanka Food Processors Association (SLFPA)—acknowledged some partial amendments to the regulations but insisted that several clauses remained unfeasible.
Ambiguity in Government Actions
Adding to the frustration is the perceived inconsistency in government communications. For example, the Food Control Administration Unit (FCAU) recently announced a six-month postponement for certain regulations. However, Deputy Health Minister Dr. Hansaka Wijemuni confirmed in Parliament that advertising restrictions would still take effect as scheduled on 1 January 2025. This mixed messaging has left many SMEs uncertain about how to proceed.
Impact on SMEs and the Broader Economy
SMEs, which form the backbone of Sri Lanka’s economy, are particularly vulnerable to these regulations. Many argue that the rules disproportionately target the F&B sector while exempting other industries, such as personal care products.
The F&B sector, a critical driver of the country’s economy, fears that overly stringent regulations could lead to:
- Reduced global competitiveness.
- Loss of business opportunities, such as sponsorships and advertising slots.
- Potential economic fallout, including job losses and reduced contributions to GDP.
A Way Forward
While the industry supports initiatives to improve food safety and consumer protection, stakeholders urge the government to adopt a balanced approach. They are calling for:
- Exemptions for smaller packaging and reduced language requirements.
- Alignment with international standards for testing and labeling.
- Transparent and consistent guidelines to eliminate confusion.
- Meaningful collaboration between the government and industry to develop practical solutions.
Failure to address these concerns could jeopardize the growth and recovery of the F&B sector, which plays a vital role in Sri Lanka’s economic stability.
Conclusion
The new food labeling and advertising regulations represent a step toward healthier consumer practices but have exposed significant challenges in implementation. To ensure both consumer protection and business sustainability, a collaborative, practical approach is essential. Industry leaders and the government must work together to refine these rules, supporting not just public health but also the economic well-being of the nation.
