Business
Plastic Pandemic: The ecological fallout of COVID-19 and policy options for Sri Lanka
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)
The Hambantota International Port (HIP) supported a joint initiative by the Japan External Trade Organization (JETRO) and the Hambantota Chamber of Commerce, which are on an initiative to attract investments into the southern hinterland of Sri Lanka. In line with JETRO’s business engagement in India, the delegation of investors consisted mainly of Japan-based business organizations with branch offices in India and some in Sri Lanka, an HIP news release said.
“HIP is keen to support investment events of this nature as they open up opportunities for investors to do business on a regional level from the south of the island. The opportunity for Japanese companies operating in India and Sri Lanka to look at the deep south to build industry is timely at this particular juncture of Sri Lankan history. The rapid development process taking place at our port and the establishment of the last pillar of HIP’s master plan, which is container operations, will vastly support the development of industries in the southern hinterland,” says Wilson Qu, CEO of Hambantota International Port Group (HIPG)
During their visit, the delegates participated in a short familiarization tour of HIP, where they observed the port’s facilities and engaged with its officials. The visit reflected HIP’s commitment to fostering international business relationships, with the port team delivering a detailed presentation showcasing the port’s facilities and potential.
The Hambantota International Port Group (HIPG), which is behind the port’s rapid expansion in the last few years, was recognized as a top FDI contributor at the BOI’s 45th Anniversary Awards, with an investment of $1.4 billion between 2017-2022.
The delegation included representatives from JETRO offices in both India and Sri Lanka, including Kaoru Shiraishi, Director General of JETRO India, along with Junki Yamashita, Senior Director of JETRO Chennai, and Toyokazu Nagamune, Senior Director of JETRO New Delhi. Representing JETRO Sri Lanka were Hiroki Oi, Lakna Ayeshmanthi, Yuno Fukatsu, and Shigeki Nogami.
The visit to HIP marks Japan’s growing interest in Sri Lanka’s strategic trade and logistics potential, with the port serving as a vital hub for global commerce. By engaging with global stakeholders, HIP reinforces its position as a gateway for international trade and investment, paving the way for collaborations that promise mutual growth and development, the release concluded.
Launches pilot ‘Agri Modernisation Village’ programme in Mahilankadu, Kilinochchi
The Commercial Bank of Ceylon has embarked on an ambitious mission to propagate technology in the agriculture sector, encompassing all areas of agricultural potential in the country, a news release from the bank said.
This initiative aims at empowering farmer communities and improving the quality and volume of crop yields by fostering sustainable agriculture practices and equipping rural communities with the latest resources and knowledge in modern farming, it said.
The first village to be “adopted” under the pilot project of the programme was Mahilankadu in Kilinochchi, in collaboration with the University of Jaffna and the Department of Agriculture in Kilinochchi.
This first “Agri Modernization Village” was recently introduced to transplanting paddy seedlings using mechanized technology as the first demonstration of the programme. The event saw the participation of farmers, members of the local farmers’ organization, and officials and experts from the Kilinochchi area.
This programme on transplanting paddy seedlings using mechanized technology was held in Mahilankadu village and was attended by a large number of local farmers organizations and officials of institutions connected with agriculture promotion.
Commenting on the initiative, Commercial Bank’s Deputy General Manager – Personal Banking Mr Delakshan Hettiarachchi said: “This transformative initiative of the Development Credit Department of Commercial Bank for rural communities is designed to bridge the gap between traditional farming methods and innovative technologies. We believe this can revolutionize the agriculture sector, and stimulate the next generation to embrace smart agricultural practices.”
The different elements to be addressed by the ‘Agri Modernization Village’ programme include access to advanced techniques such as transplanting, sustainable irrigation, and climate-resilient crop varieties that lead to increased productivity and profitability; skills development and training; financial inclusion and access to credit via direct engagement with the Bank; improved livelihoods though better yields and access to new markets; sustainable practices that ensure the long-term viability of farmer lands; and community support and networking.
Additionally, the collaboration with academic and agricultural institutions required to implement the programme fosters a valuable knowledge-sharing environment, the Bank said.
Commercial Bank is the biggest lender overall to Sri Lanka’s small and medium enterprises (SME) sector and the second biggest lender to the country’s agriculture sector. In 2023, the Bank lent Rs 231.655 billion out of the total loans of Rs 704.142 billion to SMEs, accounting for 32.89% of the total in value terms.
Earlier this year, the Bank conducted an ‘Agri Modernization Fair’ for farmers in the Vavuniya area, bringing together some of the biggest names is Sri Lanka’s agriculture sector to introduce the latest technologies available to them and to promote smart agriculture. This followed an awareness programme conducted for farmers in the North Central Province on the functionalities of drones in the modernisation of agricultural practices.
Programmes of this nature are supported by the Bank’s 19 Agriculture & Micro Finance Units (AMFU) which are located across the country and play a key role in helping the Bank to identify specific needs of entrepreneurs who require assistance to develop either their agriculture activities or micro businesses. These units are dedicated to promoting agriculture lending and micro finance.
Commercial Bank has the widest international footprint among Sri Lankan banks, with 20 outlets in Bangladesh, a Microfinance company in Myanmar, and a fully-fledged Tier I Bank with a majority stake in the Maldives.
Business
21st Annual General Meeting of the Sri Lanka – Russia Business Council of the Ceylon Chamber of Commerce
The 21st Annual General Meeting of the Sri Lanka – Russia Business Council of the Ceylon Chamber of Commerce (SLRBC) was held recently at the Cinnamon Grand, Colombo 03. The event was graced by the presence of H.E. Levan Dzhagaryan, Ambassador of the Embassy of the Russian Federation in Sri Lanka, who participated as the Chief Guest, a news release from the chamber said.
Delivering his address, H.E. Dzhagaryan highlighted the significant trade, tourism, and cultural collaborations between Sri Lanka and Russia, emphasizing that Russia continues to play a pivotal role in Sri Lanka’s tourism sector and export trade.
The keynote speaker, Mr. Mangala Wijesinghe, Chairman and Chief Executive Officer of the Export Development Board, discussed strategies to enhance Sri Lanka’s export potential and foster stronger economic ties with Russia. His address included insights on Sri Lanka’s ambitious targets for merchandise and service exports, as well as initiatives to bolster the small and medium enterprise (SME) sector.
In his speech, Mr. Jude Fernando, President of the SLRBC, reflected on the Council’s achievements, including facilitating greater trade collaboration and enhancing bilateral relationships. He outlined future plans focused on creating new opportunities for member engagement, strengthening support for small and medium exporters, and addressing trade challenges through innovative solutions and policy reforms.
Mr. Jude Fernando, Director, Rhino Roofing Products Limited, continues as President of the SLRBC for 2024/25. Vice Presidents Mr. Buddhapriya Ramanayake, Managing Director, Maxims Overseas Holdings (Pvt) Ltd, and Mr. Prabath Harshakumar, Vice President – John Keells Holdings and Head of Business Development, Walkers Tours Ltd, were re-elected. Ms. Shamindi Kumarasinghe, Head of Exports, Nature’s Beauty Creations Limited, was re-elected Treasurer, while Mr. Kolitha Wickremasinghe, Managing Director, SALOTA International (Pvt) Ltd, continues as Immediate Past President.
The newly elected committee includes representatives from Avian Technologies (Pvt) Ltd, Ceylon Fresh Teas (Pvt) Ltd, Freight Links International (Pte) Ltd, HVA Food PLC, Millennium Teas (Pvt) Ltd, Regency Teas (Pvt) Ltd, Scanwell Logistics Colombo (Pvt) Ltd, Shan Teas (Pvt) Ltd, and Unitrades (Pvt) Ltd.
For membership inquiries, contact Council Manager – Aneesha at the Ceylon Chamber of Commerce via 0115588856 or email industry@chamber.lk.
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