Is SL industry ready to move into a circular economy?

by Dr. Asankhaa S. Gunasinghe

Sri Lanka finds itself at a critical point in its economic trajectory, seemingly unable to continue its journey without a fundamental shift into sustainability and environmental consciousness. The increasingly acute global climate change concerns and the declining availability of natural resources primarily dictate the need for such change. Given such context, the idea of a linear economic model—essentially a ‘take-make-dispose’ paradigm—is entirely incompatible with the new paradigmatic order.

The necessity to adopt a circular economy model is not limited to the need to reduce environmental damage; true long-term sustainability and economic resilience can only be ensured by the latter. For a country like Sri Lanka, therefore, the shift into the circular economy model will bring a variety of challenges, from infrastructural limitations to economic disparities. Overcoming these challenges is critical for the country to achieve sustainable development that balances economic growth and environmental care. Thus, the question looms large: Is the Sri Lankan industry ready to make this major move toward a circular economy?

The circular economy is a paradigm shift in economic thought that seeks to separate economic growth from resource consumption and environmental deterioration. Unlike the traditional linear economy, which operates on a “take-make-dispose” basis, the circular economy aims to close the loop by fostering material and resource reuse, recycling, and regeneration. It provides a sustainable option that not only conserves resources but also creates economic opportunities while reducing environmental effects.

Sri Lanka, similar to numerous developing countries, encounters a distinct array of obstacles and prospects during its shift towards a circular economy. Given the nation’s rich cultural heritage and foreboding natural beauty, the benefits of applying sustainable economic models are evident. However, while the potential for benefits is great, the actual application of the circular economy model is challenging. Thus, a considerable number of challenges must be addressed to realise the full potential of a circular economy.

One of the main challenges is the prevalent linear attitude in Sri Lanka’s industrial sector. Historically, the country’s economic development has been fueled by a linear model that prioritizes quick growth and industrial expansion, frequently at the expense of environmental sustainability. Breaking free from this worldview demands a fundamental adjustment in attitudes and practices at all levels of society, from legislators to business leaders and consumers.

However, there are some positive developments. In recent years, Sri Lanka has undertaken various efforts to advance sustainability and promote green growth, including reducing waste, fostering the distribution of renewable energy, and preserving natural resources. The government’s Vision 2025 framework, which focuses on sustainable development and environmental stewardship, serves as a road map for moving toward a circular economy.

These measures, along with others, provide a framework by which the country can move towards a circular economy. Another favourable development is the increasing acknowledgment of the advantages of the circular economy by business entities. More and more companies understand that sustainability is not an option but a business opportunity. Embracing circular concepts can significantly reduce operating costs, enhance resilience to the disruption of supply chains, and advance a stronger share and competitive edge in the global market.

One of the industries, in which a transition to a circular economy has the potential to bring about substantial changes is the textile and clothing sector, which plays an essential role in the financial system of Sri Lanka. The export of textiles and clothes is the country’s most significant source of foreign currency, with the exception of the labour export. At the same time, the textile and clothing sectors produce a considerable amount of waste and pollution. Thus, applying circular concepts, like closed-loop recycling and eco-friendly production processes, would not only reduce the environmental impact but also create a value-added product from waste material.

Other sectors, like agriculture, also have much to gain by transitioning to a circular economy. Sri Lankan agricultural practices have generally been resource-intensive, relying heavily on chemical inputs and unsustainable farming methods. Organic farming, diverse crops, and effective water management would vastly improve soil and water efficiency and provide resilience to climate change. However, in order to fully realise the potential of a circular economy in Sri Lanka, it will be necessary for all stakeholders to work together. For example, the government should ensure that a market exists for sustainable products and technologies.

Encouraging sustainable activities requires a supportive environment, which is best provided by government policies and regulations. This encompasses enforcing environmental standards, encouraging environmentally friendly technology, and providing incentives for green investments.

Furthermore, persuading people to change their behaviours and building a sustainable culture necessitates education and awareness-raising. Schools, universities, and vocational training institutions play an important role in preparing the next generation with the knowledge and skills required to develop a circular economy.

The circular agenda can only be advanced through collaboration and partnership, in addition to the implementation of policies and the dissemination of information. The exchange of information, the transfer of technology, and the mobilization of resources can all be facilitated by public-private partnerships. Additionally, the media, academic institutions, and groups that are part of civil society also play an important part in the process of bringing attention to the issue, pushing for legislative changes, and holding stakeholders responsible.

At this critical juncture in its economic development journey, Sri Lanka must choose between a linear path of unsustainable growth and a circular path of sustainable prosperity. The adoption of the concepts of a circular economy provides a road to inclusive and sustainable development, which is characterized by the coexistence of economic prosperity, environmental stewardship, and social fairness.

Despite the fact that Sri Lanka may still have a significant distance to go before completely adopting a circular economy, the groundwork for change has been laid. For Sri Lankan businesses to be able to rise to the challenge and lead the way towards a more sustainable future, there must be governmental will, public backing, and engagement from the private sector.