Home appliances and office equipment account for 25% of electricity use in Sri Lanka, a fast growing area in the country. Highest percentage electricity consumption was reported from domestic sector, 38.9% in 2007 (source: Sri Lanka Energy Balance 2007). Lighting load in domestic sector is vital and it is observed that the peak demand of the day (between 7.00 pm and 9:00 pm) occurs mainly due to heavy lighting load of households. Dissemination of high energy efficient appliances while controlling low energy efficient appliances is considered as a solution.

Energy consumption and the energy efficiency of a particular appliance are generally hidden factors to the buyer of that product. It is axiomatic that, if the consumer is made aware of the energy consumption level and energy efficiency rating he/she could make more correct purchase decisions taking into account the energy cost  over the lifetime of the product, rather than just considering the initial cost of the appliance. Energy labeling makes the consumer aware of the energy consumption levels and energy efficiency rating of energy appliances in their purchasing; shortly it enables the consumer to identify whether that product saves energy or is an energy guzzler. Energy consumption determines the operating cost of most appliances and therefore of high concern to the consumer and his/her pocket. At the same time energy label becomes a promotional tool for the manufacturers, importers and dealers of energy efficient products to sell their products. On the other hand it discourages manufacturer and importer of low energy efficient products. It also facilitates the policy makers to identify high energy efficient products for possible incentive schemes like import duty waivers and VAT exemptions.

The first Energy Label introduced in Sri Lanka was for Compact Fluorescent Lamps (CFLs) in the year 2000. CFL was selected as the first item for energy labeling programme since it required heavy promotion. It was a collaborative achievement of the Ceylon Electricity Board (CEB), Sri Lanka Standards Institution (SLSI), Energy Conservation Fund (present Sri Lanka Sustainable Energy Authority- SLSEA) and the National Engineering Research & Development Centre (NERDC). The NERDC carried out tests on energy performance while other three state organizations worked on setting up standards, sample selection for testing, label design etc. The energy efficiency standard for CFLs was published in 2002 as SLS 1225:2002, ‘specification for energy efficiency rating for self-ballasted lamps (integral type compact fluorescent lamps)’. The label was not a mandatory requirement and therefore not all importers and manufacturers of CFLs entered in to this voluntary labeling scheme. At the initial stage there was considerable number of dealers effectively taking part in the labeling programme and due to termination of loan scheme for CFLs conducted by the CEB the number of CFL dealers joining with the programme reduced gradually.

From clauses 35 (2) (f) and 36 (2) (d) & (e) of Sri Lanka Sustainable Energy Authority Act No. 35 of 2007 Sri Lanka Sustainable Energy Authority (SLSEA) is empowered to implement energy labeling and standards programmes for appliances, specify consumption limits, and to  control manufacture, import and sale of appliances which show lower energy efficiencies than the specified limits. SLSEA is the authoritative agency and SLSEA in collaboration with the SLSI implement the energy standards and labeling programme.