Sri Lanka’s proposed legislation to regulate cosmetics marks a significant but overdue policy intervention with far-reaching implications for public health, trade, and the wider economy. The draft Cosmetics Regulation Bill, expected to be opened for public consultation in January 2026, reflects growing concern over the unregulated influx of cosmetic products into the country, particularly through informal and illicit channels.
According to National Medicines Regulatory Authority (NMRA) Chairperson Dr. Ananda Wijewickrema, the Bill was prepared by a committee appointed by the Director General of Health Services and has already undergone stakeholder consultation. A formal review of submissions is currently underway, with the public expected to gain access to the draft early next year.
The economic relevance of the legislation extends beyond consumer safety. Sri Lanka’s cosmetics market has expanded rapidly, driven by social media marketing, rising imports, and informal cottage-level production. Yet regulatory oversight has lagged behind market growth. This regulatory gap has allowed substandard and potentially harmful products to circulate freely, undermining legitimate businesses and eroding consumer confidence.
At present, the NMRA relies on provisions of the Cosmetics, Devices and Drugs Act of 1980—legislation that predates modern supply chains, e-commerce, and digital marketing. While this framework offers limited enforcement capability, it was never designed to address the scale and complexity of today’s cosmetics trade. As a result, smuggled items arriving in passenger baggage and unregistered products promoted online have flourished.
From an economic standpoint, the absence of modern regulation distorts competition. Registered importers and compliant local manufacturers face higher costs, while informal sellers operate without accountability. A comprehensive cosmetics law could level the playing field, encouraging formalization, improving tax compliance, and supporting small and medium enterprises willing to meet safety standards.
However, concerns remain over implementation. Senior health sector sources have questioned whether the new Bill will regulate both imported cosmetics and locally produced cottage-industry goods. Failure to address domestic production could create loopholes that undermine the legislation’s effectiveness.
Stronger regulation also has trade implications. Aligning Sri Lanka’s cosmetics standards with international norms could improve export potential while strengthening border controls against illicit imports. In a context of foreign exchange pressures and fiscal consolidation, improved regulatory governance can deliver both health and economic dividends.
Ultimately, the proposed Bill represents more than a regulatory update. It is a test of Sri Lanka’s ability to modernize oversight in fast-growing consumer markets, protect public welfare, and support sustainable economic activity through clear, enforceable rules.
