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.
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 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 – firstname.lastname@example.org)
Seven factors of concern at upcoming Monetary Policy Review
by Sanath Nanayakkare
The Central Bank of Sri Lanka (CBSL) is scheduled to announce its latest monetary policy review on 20th January 2022, with all eyes on dwindling foreign reserves and foreign currency exchange in the country.
In this context, First Capital Research has named 7 factors of concern that could be taken into account at the upcoming monetary policy review. They are as follows.
* Foreign Reserves USD 3.1 billion – Dec 2021
* Inflation CCPI 12.1% – Dec 2021
* GDP Growth -1.5% – 3Q2021
* Private Credit LKR 60.5 billion – Nov 2021
* 03M T-Bill rate 8.38% as at 12.01.22
Liquidity and CBSL Holdings LKR -364.0 billion and LKR 1.42 trillion
Balance of Trade (BOT) and Balance of Payment (BOP) USD -6.5 billion and USD -3.3 billion for Jan-Oct 21
First Capital Research’s Policy Rate Forecast – Jan 2022-Apr 2022 notes that they believe the CBSL may highly consider tightening the monetary policy rates in this policy review but given the concerns over economic growth, there is a probability of 40% for CBSL to maintain its policy stance at current levels.
“With high frequent indicators improving in line with expectations, we have eliminated any probability of a rate cut. We expect a continued increase in probability for a rate hike in order to prevent overheating of the economy amidst the given fiscal and monetary stimulus,” they said.
As per First Capital’s view, CBSL either can choose to hike policy rates by 50bps or 100bps or hold policy rates steady, while a rate cut is off the table due to the high debt repayment and the high domestic borrowing requirement.
First Capital believes that there is a 60% probability for a rate hike due to the remedial actions required in achieving external stability.
However, there is also a 40% probability to maintain the policy rates at its current level in order to further improve the high frequency indicators.30%, they noted.
Sri Lanka’s dash brand enters international markets
Multichemi International Ltd, which manufactures and distributes a wide range of products under dash, one of Sri Lanka’s leading detergent and household care brands, has begun exporting its products to several international markets in Asia and Oceania, with plans also to enter Africa. The dash brand includes a wide range of products in car care, household care, home fragrances and laundry care sectors. Multichemi International Ltd, which has been awarded ISO 9001:2015 certification, is a Sri Lankan pioneer in environment-friendly cleaning products, having launched the country’s first biodegradable, safe cleaning products over 28 years ago.
Amila Wijesinghe, General Manager of the Company said,”Having conquered the domestic market, we are now ready to capture the international market. We are confident that our products which are of high quality will receive a good demand overseas as well. The feedback we have received so far from our overseas customers is extremely encouraging. We are dedicated to taking our products to the international market, to bring in foreign currency to the country and help uplift the economy”,
Janaka Abeysinghe appointed SLT CEO
Sri Lanka Telecom PLC has announced the appointment of Janaka Abeysinghe as its Chief Executive Officer (CEO) with effect from February 1, 2022.
The incumbent CEO Kiththi Perera will be overseas on leave for a period of two years to pursue higher studies, according to a stock market filing by the company.
Abeysinghe joined SLT in 1991. In his present role, he leads the enterprise and wholesale business of SLT that provides integrated voice and data solutions to enterprises, government institutions, domestic telco operators and global wholesale carriers.
In his career at SLT spanning 29 years, he has held a number of senior positions, including general manager Enterprise and International Sales and has extensive experience in the areas of Enterprise Digital Services, Enterprise Communications Solutions, Data Communications, Business Development, Domestic and International Switching Operations and Global Wholesale Voice & Data Business.
He holds a Master’s Degree in Electrical and Computer Engineering from the University of Kansas, USA and a BSc degree in Electronics and Telecommunications Engineering with a First Class Honours from the University of Moratuwa.
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