CEOs of Financial Institutions Convene for a Strategic Briefing on Green Finance
On Tuesday, 26th November 2024, Biodiversity Sri Lanka (BSL) hosted a strategic briefing at Cinnamon Life, Colombo, under the EU-funded SWITCH Asia PLASTICS Project. This initiative, led by ACTED in partnership with BSL, ISB, STENUM Asia, and TERI, focuses on reducing plastic waste and promoting a circular economy in Sri Lanka.
The event was a major milestone, bringing together representatives from 32 organisations, including CEOs of leading financial institutions. Its aim was to explore the role of green financial services in fostering sustainable business practices and resilience within Sri Lanka’s economy.
In his opening address, Mr. Dilhan C. Fernando, Chairperson of Dilmah Ceylon Tea Company and Chairman of BSL, stressed the importance of green finance in building a resource-efficient, low-carbon economy. He stressed the need for Sri Lankan financial institutions to understand global financial flows and find innovative ways to tap into them.
Central Bank Governor, Dr. P. Nandalal Weerasinghe, provided insights into the role of the Central Bank of Sri Lanka in fostering green financial ecosystems and informed the participants that, CBSL was in the process of developing the green taxonomy and sustainable finance roadmap. He underscored the urgency of transitioning to green finance given Sri Lanka’s environmental vulnerabilities and escalating global challenges.
The programme highlighted the European Union’s Global Gateway strategy, which aligns economic growth with sustainability goals by leveraging green financial tools. Dr. Johann Hesse, Head of Cooperation at the EU Delegation to Sri Lanka, further emphasised the EU’s commitment to a green economic recovery, focusing on mobilising resources for transformative sustainable initiatives.
Co-founder/Director, Centre for a Smart Future
Mr. Anushka Wijesinha presented findings from the 2024 Green Finance Maturity Assessment (GFMA), outlining key opportunities and gaps in Sri Lanka’s financial sector to advance green initiatives. A key finding from the GFMA is that while green finance opportunities are growing – including funding lines for financial institutions and new lending opportunities for green projects – there remains a lack of comprehensive understanding within the market. Many financial institutions are unsure about their relative performance or where they stand in adopting green finance compared to industry benchmarks. This highlights an urgent need for capacity building and awareness among financial institutions, enabling them to better position themselves to leverage emerging opportunities and contribute to sustainable economic development.
The PLASTICS Project’s Green Finance component focuses on improving access to funding for SMEs to drive circular economy initiatives. BSL’s Green Finance Specialist, Mr Errol Abeyratne, noted, “Green finance is crucial for a sustainable future, but gaps in knowledge and reporting frameworks hinder progress.” The project addresses these barriers through initiatives like a digital toolkit and a practitioners’ forum, empowering businesses and financial institutions to embrace sustainability.
The event concluded with engaging discussions on actionable strategies to promote green financial solutions, empowering institutions to lead in sustainable economic transformation. This strategic briefing reinforced the PLASTICS Project’s role in driving private sector engagement and advancing circular economy principles as key enablers for environmental stewardship.
Boosting Sri Lanka’s Circular Conversion: The PLASTICS Project
Biodiversity Sri Lanka (BSL) is playing a pivotal role through the PLASTICS project, an ambitious, multi-partner initiative aimed at promoting a sustainable and circular economy for plastics in Sri Lanka. Funded by the EU’s SWITCH-Asia program, this 48-month project is designed to boost economic development in the plastics value and supply chains (V/SC) by supporting Small and Medium Enterprises (SMEs) through innovative approaches to resource efficiency, green finance, and sustainable waste management.
The overall objective of the project is to facilitate sustainable and innovative plastic minimisation and management in Sri Lanka by integrating SMEs in greener value and supply chains, thereby contributing to economic prosperity and environmental sustainability.
The four main outputs of the PLASTICS project are:
BSL’s Key Goals are Activity 3 and Activity 4.
Activity 3: Access to green finance and Investment’s dimension are increased to scale up green economic initiatives, especially among Businesses
Activity 4: The traceability, transparency, and compliance in plastic SWM are strengthened through public-private dialogue, collaboration and monitoring
A Focus on SMEs and Green Finance
The project aims to engage 150 SMEs, 10 entrepreneurs, and 50 Business Development Service providers to foster a collaborative environment for green business development. BSL’s work under Activity 3 involves engaging the SMEs in the circular economy, and creating awareness of green financing options. These awareness sessions, held in Colombo, Gampaha, and Kalutara in August and September 2024, encouraged SMEs to rethink their business models, adopting more sustainable and resilient approaches that align with circular economy principles.
Event held for SMEs in Colombo at the BMICH on 15 August 2024
Event held for SMEs in Kaluthara at the Royal Oshin hotel on 12 September 2024
Event held for SMEs in Gampaha at the KayJay hotel on 13 September 2024
Why promote a Circular Economy?
A circular economy promotes efficient use of resources, reducing waste by encouraging the reuse and recycling of materials. For businesses, especially in sectors that use plastics, adopting circular economy practices means less dependency on raw materials, cost savings, and compliance with evolving environmental regulations. Climate change is also a significant business risk, and understanding how to mitigate its impacts—while taking advantage of green finance options—can help businesses remain competitive in an increasingly eco-conscious market.
BSL is at the forefront of helping SMEs in Sri Lanka navigate these challenges, providing valuable insights into the circular economy and green financing incentives. These efforts are particularly focused on women-led businesses, helping them improve their competitiveness, expand their value addition, and access resources for scaling up sustainable practices.
Extended Producer Responsibility (EPR)
Another vital aspect of BSL’s contribution is through Activity 4, which focuses on advancing Extended Producer Responsibility (EPR) in Sri Lanka. EPR shifts the responsibility for post-consumer plastic waste management onto producers, ensuring they play a key role in the entire lifecycle of their products—from production to disposal. This strategy encourages responsible manufacturing and supports the proper collection and recycling of plastics.
In August 2024, BSL co-hosted the EPR Symposium in collaboration with the Ceylon Chamber of Commerce, bringing together industry leaders, policymakers, and environmental advocates to discuss how innovation can help advance environmental responsibility. The symposium was a unique opportunity to celebrate the progress made in promoting EPR in Sri Lanka, and to explore new frontiers in sustainable plastic management. By focusing on collaboration and innovation, BSL is helping Sri Lankan businesses take ownership of their environmental impact, ensuring that sustainability becomes a core part of their business strategies.
Looking Forward
With continued support from BSL and its partners, the PLASTICS project is paving the way for a sustainable future for Sri Lanka’s plastics industry. By promoting circular economy principles, facilitating access to green finance, and strengthening waste management frameworks, the project is helping businesses – both large and small – contribute to environmental conservation while improving their own resilience and competitiveness.
Through initiatives like the LIFE Series of projects and active collaboration with government agencies, BSL is ensuring that the private sector remains a powerful force for positive change in Sri Lanka’s journey towards sustainability.
Keep an eye on our newsletter for more updates on this transformative project, and find out how you can get involved in shaping a greener, more sustainable future for Sri Lanka.
EPR Symposium: A Path to Circular Economy
The Extended Producer Responsibility (EPR) Symposium held on 22 August 2024 was a pivotal moment in Sri Lanka’s ongoing journey toward sustainable waste management. Organised by the Ceylon Chamber of Commerce (CCC) and Biodiversity Sri Lanka (BSL), the event brought together industry leaders, policymakers, and environmental advocates to explore innovative solutions for plastic waste. With the support of the EU SWITCH-Asia PLASTICS project, this symposium underscored the urgent need for collective action in addressing the growing plastic pollution crisis.
EPR is a policy tool designed to make producers accountable for the end-of-life impact of their products. This means they are responsible for ensuring proper collection, recycling, or disposal, encouraging sustainable product design from the outset. In Sri Lanka, EPR has gained momentum since the launch of the EPR Roadmap in 2020, a framework aimed at reducing plastic waste by integrating circular economy principles.
Key Takeaways from the Symposium
The symposium was structured into four sessions, each focused on a different aspect of EPR’s role in transforming Sri Lanka’s environmental landscape:
- Transforming Sri Lanka’s Private Sector towards Sustainable Practices:
This session featured regional case studies from countries like South Africa and India, which have successfully implemented EPR. South Africa’s producer-led packaging agreements, for example, have demonstrated the effectiveness of private sector-driven waste management initiatives. Similar models could be adapted to Sri Lanka’s context, promoting greater accountability and collaboration among businesses.
- Accelerating Circular Economy and Green Finance:
A dynamic panel discussion highlighted the crucial role of green financing in driving the adoption of EPR. By leveraging financial incentives and regulatory frameworks, Sri Lanka can accelerate the transition to a circular economy where materials like PET and HIPS plastics are not only collected but also recycled and reintegrated into the production cycle.
- Transitioning to a Low-Carbon Economy through Plastic Management:
Industry leaders shared insights on innovative plastic management strategies that reduce carbon emissions while ensuring efficient recycling processes. A case in point was the digital Deposit Refund System (DRS) discussed in collaboration with local stakeholders, which involves QR code-tagged PET bottles that consumers can return for a refund, encouraging responsible disposal and recycling.
- The Future of EPR in Sri Lanka:
The final session took a deep dive into the evolving landscape of EPR. Discussions centered on Sri Lanka’s voluntary EPR model, which is set to mandate reporting and collection targets for producers. As PET recycling grows, this model could scale to include more materials, further driving the country toward its sustainability goals.
A Collaborative Path Forward
Sri Lanka’s commitment to EPR reflects a broader global trend toward extended producer responsibility as a means to reduce plastic waste. With the participation of over 90% of private sector stakeholders expressing their willingness to implement the EPR roadmap, the country is well-positioned to lead by example in the region. Collaboration among manufacturers, recyclers, and government bodies is key to ensuring that the EPR system can be successfully scaled, with the ultimate goal of reducing Sri Lanka’s environmental footprint.
The success of the voluntary EPR model so far has shown that Sri Lanka can make strides in mitigating plastic pollution. As the CCC and BSL continue to engage with the private sector, the lessons learned from countries with established EPR systems, like South Africa and India, will help guide the local implementation of this innovative model.
By embracing EPR, Sri Lanka is not only tackling plastic pollution but also moving toward a more sustainable, low-carbon future. This symposium highlighted the importance of stakeholder engagement, innovation, and accountability in ensuring that EPR continues to be a driving force for environmental stewardship in the country.
