What is sustainability in logistics in Sri Lanka? Key trends shaping 2025

Sustainable logistics has moved far beyond a buzzword to become a business imperative for companies around the world. In 2025, as global supply chains face growing environmental pressures, Sri Lanka is also seeing a shift in how businesses and consumers approach greener practices.

For e-consumers, sustainability is now a key consideration. Surveys show that 91% of buyers expect more sustainable shipments1. Among digital shoppers, 45% say they are willing to pay more for sustainable products1. This growing demand is encouraging an increasing number of companies to adopt eco-friendly logistics practices.

In this article, we explore the top sustainability trends shaping logistics in 2025, including advances in green technology, carbon-neutral shipping, and circular supply chains. We also share practical steps SMEs in Sri Lanka can take to future-proof operations, lower costs, and stay ahead in a rapidly evolving market.

What does sustainable logistics mean for businesses in Sri Lanka?

Sustainability in logistics comes down to one simple idea: moving goods in a smarter, cleaner, and more efficient way. For Sri Lankan SMEs, that could mean cutting down on fuel-heavy routes, minimizing waste from packaging, or finding better ways to store and ship products. Every small shift adds up, for the planet, and for your bottom line.

Why sustainable logistics matters for SMEs in Sri Lanka 

Better brand reputation

More Sri Lankan brands are going green, and the importance to consumers cannot be overstated. Customers now expect more sustainable shipments1, from reducing packaging materials and single-use plastics to optimizing transport, deliveries, and working with local suppliers, making eco-friendly practices a key factor in purchasing decisions. 

Showing a visible commitment to implementing sustainability in logistics, such as using DHL Express’ GoGreen Plus for sending parcels overseas, signals that your business takes action, not just words. This can benefit your business by enhancing customer satisfaction, encouraging loyalty, and increasing the likelihood of repeat business.

Lower operational costs

Efficiency and sustainability go hand in hand. In Sri Lanka, where fuel costs can fluctuate unpredictably, making smart route planning essential. Optimizing delivery routes, consolidating shipments, and switching to electric or hybrid vehicles not only reduces emissions but also helps buffer against rising fuel expenses. 

Stay ahead of regulations

Sri Lanka is steadily tightening environmental standards, from stricter emissions limits for vehicles to regulations on packaging waste2. SMEs that embed sustainable practices into their logistics now can stay ahead of these changes and avoid compliance issues.

Build a resilient supply chain against fuel & climate disruptions

Disruptions are part of everyday business in Sri Lanka. Fuel shortages, port congestion, and sudden monsoon-related delays can throw logistics off track. Sustainable practices help build resilience against these challenges.

Diversifying transport modes, consolidating shipments, and adopting EVs or low-emission fleets reduce dependence on volatile fuel and congested routes.

Sustainability in logistics: Trends for 2025

Whether your business ships across Sri Lanka or internationally, these trends are shaping more eco-friendly logistics:

• Carbon-neutral and low-emission shipping: More logistics providers now offer low-emission options.
• Electric fleets for last-mile delivery: Electric fleets reduce fuel costs, cut emissions, and position your business as a forward-thinking operator.
• Data-driven supply chain optimization: AI and machine learning tools help businesses optimize routes.
• Sustainable warehousing: Solar-powered warehouses and energy-efficient facilities are becoming increasingly common.
• Packaging reimagined: Biodegradable and reusable options are gaining traction in Sri Lanka. Lightweight materials, recycled mailers, and compostable alternatives reduce waste and shipping weight.

Six best practices to make your logistics more sustainable

1. Optimize transportation routes

Cutting unnecessary mileage is one of the simplest ways to reduce fuel use, emissions, and costs. For example, consolidating shipments between Colombo and Kandy can significantly lower the number of trips needed, saving both money and carbon. 

Partnering with logistics providers like DHL Express, which already integrates route optimization into their operations, makes it easier for SMEs to plan deliveries without extra hassle.

2. Switch to sustainable delivery options

Look for delivery options that cut emissions without adding complexity. In Colombo, electric vehicles are slowly becoming a viable choice for urban deliveries, and SMEs can tap into low-emission shipping through services like DHL’s GoGreen Plus. 

For international shipments, GoGreen Plus uses certified Sustainable Aviation Fuel (SAF) to reduce emissions across the supply chain, letting businesses make a tangible environmental impact without overhauling their logistics setup.

3. Pay attention to your packaging

Oversized boxes and excess fillers increase shipping volume, fuel use, and emissions. Right-sizing your packaging to fit products precisely reduces waste and cuts costs. SMEs in Sri Lanka can further lower their footprint by sourcing locally made recyclable cartons, which reduces both transportation emissions and material expenses.

4. Embrace AI

AI is helping SMEs make better logistics decisions while reducing waste. For example, AI can predict order surges during Sri Lankan festivals like Vesak or Sinhala and Tamil New Year, helping businesses avoid overstocking and unnecessary storage costs.

5. Reduce your failed delivery rate with On Demand Delivery

Every re-delivery attempt costs your business money and increases its transportation emissions. But with DHL Express' On Demand Delivery service, your customers will be able to choose from a wide range of flexible delivery options, including a specific delivery time (when they know they will be home), or opting to have the package left with a neighbor. Your customers enjoy a convenient experience, whilst your business increases its first-time delivery rate.

6. Make returns more sustainable

Returns can generate significant emissions and waste, but smarter, more sustainable logistics management can make a difference. Use clear sizing guides, accurate product descriptions, and better inventory planning to reduce returns. For items that do come back, reusable packaging and consolidated return shipping can help cut environmental impact.

In Sri Lanka, SMEs can leverage return hubs in Colombo or Kandy to consolidate shipments, making the process more efficient and lowering both costs and emissions.

Make your logistics more sustainable with DHL Express

Whether you’re an SME starting out or an e-commerce brand scaling up, DHL Express Sri Lanka offers practical ways to make your logistics more eco-friendly and efficient. Key benefits include:

• Lower emissions: Reduce your carbon footprint through GoGreen Plus and Sustainable Aviation Fuel (SAF).
• Optimized delivery: More efficient routes and EV-powered last-mile options cut fuel use and transit times.
• Efficient returns: Consolidate returns through hubs in Colombo or Kandy to reduce emissions.
• Practical support: Expert guidance on packaging, carbon insetting, and sustainable supply chain practices.

Take action today. Open a DHL Express Business Account and start making your logistics more sustainable while improving efficiency and meeting customer expectations.