CEA chairman Udaya Gammanpila said new rules will be introduced to prevent misuse of the label which many firms were using as an advertising gimmick.
"If a company is using the phrase 'environmentally friendly' as part of their marketing activities they will have to obtain an eco-label from the CEA," he told a news conference.
The CEA said firms wanting to use the label will have to pay a fee to get approval and be subject to inspection to ensure they conform to the eco-label claims.
The main aim of the eco-inspection scheme is to prevent businesses from using the eco-label merely as a marketing gimmick.
Businesses that want to promote products or services labelled as eco-friendly must get written permission from the CEA.
The CEA will conduct checks throughout the production process to ensure they meet the standards that allow them to be marketed under the eco-friendly label.
Those that fail to get CEA approval cannot use the eco-friendly label.
The inspections are a