Diet plays a central role in type 2 diabetes mellitus (T2DM) management and prevention of diabetes-related complications, yet dietary recommendations are enacted within dynamic social, economic and food environments. In Sri Lanka, transitions in food environments and socioeconomic conditions associated with globalisation, urbanisation, and economic reforms further challenge the translation of dietary advice into everyday food practices. Food literacy describes a collection of capabilities that support an individual to achieve their food and nutrition needs in changing contexts (1). This study aimed to explore how food literacy could support people living with T2DM to follow dietary advice within their changing everyday contexts. A qualitative co-design study was conducted with 10 people living with T2DM and 10 healthcare professionals (HCPs) involved in T2DM management in Sri Lanka. The first co-design workshop explored barriers and enablers to following dietary advice. Findings were mapped to the Theoretical Domains Framework and Capability, Opportunity, Motivation Model of Behaviour (COM-B) (2). Participants described challenges arising from work, time and financial constraints, food and home environments, and family and sociocultural influences. Most barriers were located within the Opportunity component, reflecting these everyday realities. Knowledge of dietary recommendations alone was insufficient; practical skills in meal planning, food selection, and preparation were needed to enact dietary advice within everyday circumstances. Motivation to follow dietary advice was influenced by capabilities and opportunities. HCPs recognised that current dietary advice was often impractical, and that personalised support was needed to address everyday circumstances of individuals. However, limited consultation time and high patient volumes made it difficult to provide personalised advice. Within these constraints, HCPs prioritised nutrition knowledge, while identifying food literacy as an important component of diabetes management that could support practical capabilities needed to enact dietary advice within different everyday circumstances. They emphasised that food literacy support should be personalised and identified a need for an efficient approach to understand personal context and tailor support accordingly. These findings suggest that supporting dietary management in T2DM requires more than providing nutrition knowledge; people need to enhance capabilities that enable them to enact dietary advice within changing everyday circumstances. Food literacy may provide an approach to supporting these capabilities through personalised support. Further research is warranted to develop an efficient tool to tailor food literacy support within diabetes care.