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Plastic Pandemic: The ecological fallout of COVID-19 and policy options for Sri Lanka

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by Ruwan Samaraweera

The lockdowns introduced in 2020 to curb the spread of COVID-19 saw the narrative “nature is healing” gain prominence. However, the notion that nature, in the absence of people, was healing fizzled out fairly quickly with the emergence of fresh environmental challenges, most notably, the resurgence of single-use plastics. In fact, in the months following the lockdowns, reliance on plastics grew exponentially, with the scale of the negative environmental impacts far outweighing initial gains such as reduced air and noise pollution. This blog examines the ecological fallout of the pandemic and suggests policy options for Sri Lanka to avert the looming environmental disaster.

The Plastic Pandemic

Plastics have several applications and offer undeniable benefits to consumers and producers due to specific, inherent properties. They are hygienic, lightweight, flexible and anti-corrosive. As such, plastics are among the most extensively-produced material globally with 359 million tonnes of plastics produced in 2018 alone. However, plastics have become a severe environmental concern due to haphazard disposal. Plastics include consumables like plastic bags, straws, cups, bottles etc., which are thrown away after being used just once, referred to as single-use plastics. Worldwide consumption of plastic bags ranges from 1 to 5 trillion annually, and almost 160,000 plastic bags are consumed per second globally.

Without even being a large consumer of plastics globally, Sri Lanka generates more than 5 million kilograms of plastic waste per day, where the per capita daily contribution is nearly 0.5 kg. Sri Lanka is already struggling to cope with the amount of plastic waste generated each year. Unless concrete measures are taken to alter the current manufacturing methods and consumption patterns of plastics, the situation could result in irreversible damage to the environment. The global threat of the COVID-19 pandemic makes the problem (ex: Styrofoam, aluminium cans, polystyrene etc.) even more challenging.

An Ugly Resurgence

The demand for plastic by medical and packaging sectors is increasing sharply compared to pre-pandemic conditions (Figure 1). For instance, an estimated 89 million medical masks, 76 million gloves and 1.6 million goggles are required monthly in the battle against the pandemic, according to the World Health Organization (WHO). As a result, researchers expect a 53.4% market growth for disposable facemasks over 2020-2027. The disposable facemasks are produced using polymers such as polypropylene (PP), polyurethane, polyacrylonitrile, polystyrene, polycarbonate, polyethylene (LDPE), or polyester, which are potential sources of microplastics.

Estimates illustrate that the demand for disposable syringes and plastic containers that store vaccines will be increased with nationwide vaccination efforts against COVID-19. As a result, the global market will experience a 7% compound annual growth rate and reach a value of USD 14.4 billion by 2030. Moreover, the demand for other personal protective equipment like face shields made from PP, LDPE gowns, vinyl gloves made from polyvinyl chloride (PVC) will increase sharply along with the plastic packaging material. Thus, the production and consumption of PP, LDPE and PVC material will exhibit an increasing trend.

Lockdowns and resulting online shopping and home delivery can escalate the demand for plastic, which is reflected by the accumulation of plastic wastes, especially from food packaging. In Thailand, plastic waste rose by 15% during the pandemic, primarily due to food packaging waste, resulting from tripled food delivery demand. During the pandemic, many governments worldwide banned the use of reusable cups and food utensils due to safety reasons since reusable commodities could be contagious. Scholars also predict a drastic increase in medical waste that includes single-use plastic and other environmentally problematic material.

For instance, in Hubei province, China, medical waste generation increased sharply, and by 9 March 2020, the country collected 468.9 tonnes of medical waste related to the pandemic. A more significant proportion of that waste is comprised of single-use plastics. Wuhan’s medical waste exceeded the maximum incineration capacity of 46 tonnes/day due to a dramatic rise in waste accumulation up to 240 tonnes/day. Hence, despite their detrimental impacts, managing the pandemic is linked with single-use plastics and other environmentally-harmful material.

 

Addressing environmental, economic, health, and socio-cultural issues related to single-use plastics and other damaging material requires identifying the most problematic single-use plastic and other material, evaluating the scale of the problem, identifying significant sources of pollution and potential impacts of mismanagement on the environment, human and animal health, and the economy. Various methods can reduce the harmful effects of single-use plastics and other environmentally problematic materials. However, the availability of alternatives is crucial to cut down the use effectively.

Voluntary reduction strategies

One of the key instruments for single-use plastic is voluntary reduction strategies. Those are based on consumption patterns, consumer and producer choices upon an increased understanding.

Awareness creation

Voluntary adjustments are facilitated by awareness creation among stakeholder groups which are a gradual and transformational process that changes consumer and producer behaviour.

Policy instruments

Policy instruments can be classified as regulatory and economic (market-based and a combination of regulatory and financial) instruments.

The principal legislation governing plastic pollution in Sri Lanka is the National Environmental Act No 47 of 1980, where Section 32 comprises the manufacture, sale and use of plastic and polythene. As previously mentioned, several amendments were made to the act to address the challenges in managing plastic waste. Lobbying from local industry and pressures from major exporting countries, and availability of alternatives remain significant challenges in implementing bans. However, as discussed earlier, single-use plastics have the lowest recyclability and highest disposable rates. Therefore, implementing a combined approach of levies, bans, and extended producer responsibility (EPR) wherever necessary would enhance the positive impacts.

Link to blog: https://www.ips.lk/talkingeconomics/2021/12/07/plastic-pandemic-the-ecological-fallout-of-covid-19-and-policy-options-for-sri-lanka/

Ruwan Samaraweera is a Research Officer at IPS, with a background in entrepreneurial agriculture. He holds a Bachelor’s in Export Agriculture from Uva Wellassa University of Sri Lanka. His research interests are in environmental economics, agricultural economics, macro-economic policy and planning, labour and migration, and poverty and development policy. (Talk to Ruwan – ruwan@ips.lk)



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CEB successor company breaks into top three in competitive BESS tender

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Snr. Eng. Pubudhu Niroshan: ‘Boon to consumers’

By Ifham Nizam

National Transmission Network Service Provider (Pvt) Ltd. (NTNSP), has secured third place in Sri Lanka’s fiercely contested 160 MW/640 MWh Battery Energy Storage System (BESS) tender, beating a number of established private-sector energy players in a major competitive procurement exercise just six months after the restructuring of the Ceylon Electricity Board (CEB).

The result marks a significant early indication that a newly restructured CEB successor company can compete on a commercial footing with established players in the rapidly expanding energy market, Senior Engineer Pubudhu Niroshan told The Island Financial Review.

More significantly, Niroshan said NTNSP’s entry into the tender helped intensify competition and contributed to a roughly 10% reduction in the lowest bid compared with the previous 160 MW/640 MWh BESS procurement, potentially delivering a more favourable outcome for electricity consumers.

“Entering such a highly competitive bidding process within just six months of restructuring and emerging third is by no means an easy task, Niroshan said.

He said the achievement had to be viewed in the context of the calibre and number of competitors involved in the process, adding that NTNSP had demonstrated that a successor company emerging from the CEB restructuring could step into a competitive commercial environment and hold its own against established businesses.

The significance of NTNSP’s participation, however, extended beyond its third-place ranking.

According to Niroshan, the company’s decision to enter the BESS procurement created an additional layer of competition, forcing other bidders to sharpen their commercial offers.

‘The first and second-ranked bidders had NTNSP as another competitor. That itself created additional competitive pressure, he said.

The BESS procurement involved a total capacity of 160 MW/640 MWh, with the programme divided into individual projects.

The procurement was designed to bring private and other eligible project proponents into the development and operation of battery storage facilities, providing an important mechanism for integrating renewable energy and strengthening the electricity system.

The outcome, he said, was particularly important for electricity consumers because greater competition in procurement could ultimately translate into lower costs for the power system.

‘Once you have several serious players competing, offering a fair and competitive price becomes essential. That is ultimately good for the consumer, he said.

Niroshan also referred to concerns previously raised by NTNSP before the Public Utilities Commission of Sri Lanka (PUCSL) regarding prices submitted for BESS projects under the Feed-in Tariff (FiT) mechanism.

He said subsequent market developments had provided support for the view that some of the prices submitted under the FiT mechanism were comparatively high.

For Niroshan, the experience also demonstrated why competition must remain at the heart of the restructuring of the electricity sector.

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Hundred farming elders witness Sacred Dalada Perahera

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Serendib Flour Mills continued its longstanding commitment to rural communities through the fifth edition of Serendib Uththama Dalada, more than 100 elderly mothers and fathers from remote farming communities to experience the sacred Sri Dalada Perahera in Kandy.

Held on 26 August 2026, the initiative brought together elderly parents from Mahalakotuwa, Elahera and Attanakadawala, many of whom have spent a lifetime engaged in agriculture and contributing towards sustaining communities across the country. For these elders, the initiative offered an opportunity to undertake a deeply meaningful spiritual journey and witness one of Sri Lanka’s most revered religious and cultural traditions.

Conducted under the campaign thought, “Nourishing the hearts of elderly parents with spiritual merits, who once nourished a generation,” Serendib Uththama Dalada recognises the lifelong contribution and sacrifices of farming mothers and fathers while creating an experience that may otherwise remain beyond their reach.

Serendib Flour Mills facilitated the entire journey, providing safe and comfortable return transportation to Kandy aboard three dedicated buses. Special arrangements were also made to enable the participants to worship at the Sri Dalada Maligawa, followed by reserved seating at a specially erected VIP stand, allowing them to comfortably witness the grandeur of the Dalada Perahera.

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Siyapatha Finance records ‘exceptional financial performance for 1H2026’

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Sumith Cumaranatunga, Chairman / Mathisha Hewavitharana, CEO

Siyapatha Finance PLC, the largest fully-owned finance company of the Sampath Bank Group, delivered an exceptional financial performance for the six months ended 30 June 2026, reflecting the Company’s continued strategic growth initiatives, resilient asset quality, and unwavering commitment to sustainable value creation.

The Company recorded a profit after tax (PAT) of Rs. 1,007 million, a robust 43 percent increase from Rs. 706 million in the corresponding period of 2025, while profit before taxes (PBT) grew 38 percent to Rs. 2,334 million from Rs. 1,689 million, demonstrating sustained market and customer confidence in the Company’s core operations.

“Our performance in the first half of 2026 is a clear reflection of Siyapatha Finance’s strategic foresight and our unwavering commitment to sustainable growth,” said Siyapatha Finance Chief Executive Officer Mathisha Hewawitharana. “Surpassing the Rs. 104 billion mark in total assets while significantly improving our asset quality underscores the strength of our core operations and the deep trust our customers place in us. As we navigate the evolving macroeconomic landscape, we remain focused on prudent risk management and delivering enhanced value to our stakeholders.”

The Company’s core business operations continued to yield strong returns, with total interest income growing to Rs. 7,719 million from Rs. 5,272 million a year earlier, driving net interest income up to Rs. 3,487 million from Rs. 2,629 million, signifying the Company’s efficient management of assets and liabilities. Other income strengthened to Rs. 1,054 million from Rs. 826 million, reinforcing the effectiveness of the Company’s revenue diversification strategy. The cost-to-income ratio improved to 49 percent from 54 percent, a testament to the Company’s continued focus on operational efficiency and process optimization.

Asset quality strengthened markedly during the period, underscoring the success of Siyapatha Finance’s prudent credit risk management and proactive recovery initiatives. The gross stage 3 loans ratio improved to 4 percent from 8 percent a year earlier, while the net stage 3 loans ratio declined to 2 percent from 3 percent.

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