The Supreme Court yesterday (3) took up a Fundamental Rights petition seeking to ensure that fees charged for polythene bags by supermarkets and private retail outlets are remitted to the State. The Court directed the respondents to report on progress towards a collection mechanism and ordered the petition to be called again on 5 March 2027.
The petition was filed by the Centre for Environmental Justice (CEJ), its Chairman Hemantha Withanage and its Executive Director Dilena Pathragoda, who are acting both individually and in the public interest. The respondents are President Anura Kumara Dissanayake in his capacity as Minister of Finance, the Central Environmental Authority (CEA) and its Director General, the Consumer Affairs Authority, the Environmental Minister and Secretary to the Ministry of Environment, the Inspector General of Police and the Attorney General.
The matter was taken up before a three-judge bench including the Chief Justice and Justice Achala Wengappuli.
Counsel for the petitioners submitted that, following a previous Supreme Court determination in SC FR 220/2021, a directive had been issued to impose a levy or fee on polythene bags. Supermarkets and other private establishments have since been charging consumers for such bags. The petitioners told the Court that the proceeds do not go to the government but are deposited directly into the private accounts of the businesses concerned. They argued that permitting private entities to retain the funds is wrongful and infringes fundamental rights.
According to the petition, state authorities recorded a settlement in the earlier proceedings on 28 March 2024, agreeing to end the free distribution of bags and to impose a structured levy under the polluter pays principle. Consumer Affairs Authority Gazette Extraordinary No. 2456/41, effective 1 November 2025, banned free distribution and required retailers to charge Rs. 3 for medium-sized handle bags and Rs. 5 for larger ones, made of Low-Density Polyethylene (LDPE) and Linear Low-Density Polyethylene (LLDPE).
The petitioners contend that, while the rule has curtailed bag consumption, the fee operates as a commercial charge retained by traders rather than a State-collected levy. They state that none of the proceeds reach the Consolidated Fund, waste management infrastructure, recycling programmes or environmental remediation projects.
The petitioners asked the Court to order the State to collect the revenue under Sections 2 and 3 of the Environmental Conservation Levy Act, No. 26 of 2008, and to allocate it to environmental conservation. They stated that, under the Act, the Minister of Finance, in consultation with the Minister of Environment, can designate LDPE and LLDPE shopping bags as "specified items" subject to a conservation levy.
They also sought a declaration that Article 12(1) of the Constitution, which guarantees equality and equal protection of the law, is being violated, together with regulations under the Act governing the collection and use of the revenue. They further asked for an order directing State agencies to promote reusable packaging, biodegradable lunch sheets and other sustainable alternatives.
The petition also points to a lack of coordinated enforcement between the Police and the CEA, and calls for routine inspections, joint raids and the seizure of banned polythene products, including thin bags and lunch sheets.
During the hearing, the Court was informed that discussions are under way among the respondents to formulate a mechanism for remitting the fees collected by private retail outlets, or an alternative tax, to the government.
Attorneys Dr. Ravindranath Dabare, Nilmal Wickramasinghe and Savanthi Ponnamperuma appeared for the petitioners. Additional Solicitor General Kanishka de Silva appeared for the President and the government.