Business

Rejuvenating waste plastic bottles, a universal treasure

Published

5 years ago

2021/05/2

by Michael F. Perera

Valuable resources are extracted every day to develop convenient products such as bottles, containers and more. As the extraction of virgin resources rapidly depletes the availability of such, it is high time a sustainable alternative is fetched, to ensure longevity and liveability for future generations.

With the prices for virgin material on the rise, the alternative, which is waste that can be recycled, is staring at us from the roadsides, canals and landfills. If we collect and recycle the waste plastic bottles around our island, the need to import approximately 1000-1300 tonnes of polyethylene terephthalate (PET) every month would significantly reduce, and help revive the environment and economy as well.

Sixty percent of the monthly PET plastic in Sri Lanka is circulated within the Western Province. Unless measures are taken to collect and dispose of waste plastic effectively, the requirement to import plastic will continue to rise, and the potential for a resilient circular economy and improved livelihoods in the recycling sector, will eventually disappear.

Bottle-to-Bottle: a better solution?

One of the easiest solutions is to bring plastic back into the system and recycle it to produce a bottle again. But, that’s hardly a reality. Why? Sri Lanka doesn’t legally allow recycled content in food-grade manufacturing.

According to the Extraordinary Gazette Notification No. 1160/30 of June 29, 2010 “any food in any package, appliance, container or vessel that has been made from recycled plastic” is prohibited. Thus, there is a fear around using recycled plastic in food-grade packaging in terms of quality, and impact on the health of the end consumer.

However, around the world, countries are embracing this concept, committing to world-class standards and implementing the bottle-to-bottle concept to efficiently curb plastic waste pollution, while also giving back to their economy and local communities. Developed and developing economies such as USA, Canada, Europe, Brazil, Bangladesh and Nigeria allows recycled PET in food-grade packaging, which scales down on the use of virgin resin in manufacturing.

For example, the level of PET bottle recycling in Japan is one of the highest in the world, and this was made possible by the Containers and Packaging Recycling Act (1995) which was implemented to promote the segregated collection and recycling of containers and packaging waste. The Government of Japan designates three types of recycling processes; Material, Chemical and Thermal recycling. PET plastics fall under the ‘Material’ category, where PET bottles are made into new PET products.

In Indonesia, Coca-Cola plans to set up a new recycling facility, which will help eliminate the use of virgin plastic. The facility will house a bottle-to-bottle grade PET recycling facility where the use of recycled plastic could reduce the amount of new plastic resin the company uses by an estimated 25,000 tonnes each year. Through this venture, Coca-Cola hopes to play a critical role in supporting Indonesia’s plastic waste management issue, while creating an impact on the country’s circular economy as well.

Moreover, in evident efforts to save foreign exchange and successfully battle against the war of pollution, the bottle-to-bottle concept is approved in many countries. The case in Sri Lanka should be no different. As this concept is also approved by The United States Food and Drug Administration (FDA), Lankan authorities should follow suit and save valuable foreign exchange by converting waste PET back to a bottle. Currently, Sri Lanka spends up to USD 1,550 per ton, per month in foreign reserves for the importation of PET plastic, where approximately 1000-1300 tons of PET is imported per month.

Additionally, recycling PET bottles to their original form can be done more than 7-8 times, where the process is much more affordable and less harmful to the environment, as PET plastics produce three times less CO2 in production when compared to an alternative material such as glass.

Using modern and advanced machinery in the recycling process, the intrinsic viscosity (IV) level, which is the strength of a bottle, will not only be kept stable, but increase as well.

So if the underlying benefits are clear and extremely advantageous to all Sri Lankans, why hasn’t this concept been implemented?

Waste management: a need for stronger reform

In a holistic point of view, one of the biggest issues in Sri Lanka’s waste management system is the poor implementation of proper waste collection. From rural households, to the urban West, to the authoritative bodies in the country, a responsibility to segregate and dispose of plastic waste appropriately must be indoctrinated.

Primarily, every household should ideally have four separate designated bins to collect organic waste, paper waste, glass and metal waste and plastic waste. This way, collectors can collect the less contaminated plastics and give it to the recyclers.

In Japan, households are encouraged to sort their waste at home as they are provided with specific containers for PET bottles, PS foam containers, and PP bottle caps separately, instead of mixing them with other plastics. They are further encouraged to utilise segregated disposal methods such as PET bottle shredders provided at supermarkets for consumers to dispose of their used PET bottles, after which they can collect store credit or shopping tokens. Japan’s impressively high plastic recycling rate is owed to its local Governments’ sorting rules, which are some of the strictest in the world.

In Sri Lanka, most people look up to the Government to address this issue, but truth be told, the infrastructure and practices in place are outdated and inefficient. In essence, the local Government’s policy decisions in the waste management and recycling arenas have been extreme, often overlooking the long-term economic and environmental benefits that could be availed, in favour of an ‘easy-fix’ ban.

Local authorities are also a key stakeholder in ensuring a proper and efficient waste segregation and management system. Their support in raising awareness and imposing strict rules and penalties to maintain proper waste segregation will not only empower the local recycling industry, but also reflect well as people now want to recycle, but the issue prevails in collection efforts.

Therefore, it is vital that the local communities and the Government take a strong stance in handling the country’s waste management issue, as the long term economic and environmental benefits definitively outweigh the complications and issues created by either neglecting the concerns in the local waste management and recycling sector, or simply chucking the problem under the rug with another ‘ban’. It is critical that waste management efforts are strengthened so that waste plastic makes its way into the recycling economy. An easy solution to the plastic waste issue is also to have plastic go back into the system. However, this is currently prohibited in the country as it has been gazetted as mentioned above. Allowing recycled material to be used in food-grade packaging will further increase the demand for plastic recycling, a critical priority in our island nation.

(The writer is the chairman at CMC Engineering Export GmbH, a member of the Melchers Group, engaged in importing an extensive range of technical products from quality suppliers from Europe and Asia, and is also a Past President of the Institute of Packaging)

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Business

UNDP, Central Bank deepen financial literacy drive to build economic resilience

Published

6 hours ago

2026/06/17

Sahan Weerasooriya

Ms. Azusa Kubota and Dr. Nandalal Weerasinghe.

By Ifham Nizam

The United Nations Development Programme (UNDP) and the Central Bank of Sri Lanka (CBSL) have strengthened their partnership to advance financial literacy across the country, with a renewed focus on empowering vulnerable communities, strengthening economic resilience and promoting sustainable development.

The two institutions formally launched the second phase of their collaboration recently, reaffirming their commitment to implementing Sri Lanka’s National Financial Literacy Roadmap (2024–2028), a cornerstone of the National Financial Inclusion Strategy (NFIS).

The partnership was marked by a meeting between Central Bank Governor Dr. P. Nandalal Weerasinghe and UNDP Resident Representative in Sri Lanka Ms. Azusa Kubota, together with officials from both organisations.

Building on technical support provided by UNDP during 2024 and 2025, the latest phase seeks to equip individuals, households and businesses with the knowledge required to make sound financial decisions, improve livelihoods and enhance resilience in an increasingly uncertain economic and climatic environment.

The initiative comes at a crucial juncture as Sri Lanka continues its economic recovery while grappling with climate-related challenges that disproportionately affect rural communities and small enterprises.

A key component of the programme will be strengthening the capacity of government outreach officers across all districts to deliver financial literacy training to rural populations and micro, small and medium enterprises (MSMEs).

The training will be based on the Financial Literacy Curriculum developed by the Central Bank, with UNDP supporting the enhancement of modules through the integration of climate-resilient financial management concepts.

The programme aligns closely with Sri Lanka’s Financial Literacy Roadmap and is expected to contribute significantly to improving financial knowledge and access across the country. It is supported by several development and private-sector partners, including the government of Japan, Chrysalis, VISA and Hirdaramani-Lacoste.

Speaking on the importance of the initiative, Central Bank Governor Dr. Weerasinghe said the partnership would help broaden the reach of financial literacy efforts while addressing emerging challenges such as climate-related financial risks.

“We particularly welcome the focus on strengthening financial resilience, climate-related financial preparedness, public awareness campaigns and capacity-building through Training-of-Trainers programmes, he said.

He noted that the initiatives would ensure that different segments of society gain access to practical financial knowledge and develop the skills necessary to foster responsible financial behaviour and improve their overall financial well-being.

UNDP Resident Representative Ms. Kubota underscored the critical role financial literacy plays in creating inclusive and resilient economies.

“Financial literacy is a critical foundation for inclusive and resilient economies. Through our partnership with the Central Bank of Sri Lanka, we have been working to empower individuals, particularly those most vulnerable, with the knowledge and tools needed to make informed financial decisions and build secure livelihoods, she said.

Business

National Export Development Plan (2026–2030) presented to the President

Published

7 hours ago

2026/06/17

Priyan

Marking an important milestone in Sri Lanka’s economic development, the National Export Development Plan (NEDP) for the period 2026–2030 was presented to President Anura Kumara Dissanayake on Tuesday morning (16) at the Presidential Secretariat.

The 2026–2030 National Export Development Plan (NEDP) is a key national programme formulated in line with the Government’s policy direction under the 2025 Budget. It aims to strengthen the country’s export sector and achieve export-led sustainable economic growth.

The strategic plan has been developed under the guidance of the Ministry of Industry and Entrepreneurship Development and the leadership of the Sri Lanka Export Development Board (EDB), with technical assistance provided through the Asian Development Bank’s (ADB) Policy-Based Lending (PBL) programme. It is the result of an extensive consultative process carried out in close collaboration with key government institutions, private sector stakeholders, and development partners.

The proposal submitted by the Minister of Industry and Entrepreneurship Development to recognise the “Sri Lanka National Export Development Plan 2026–2030” as the official strategic framework for export development and promotion in Sri Lanka was approved by the Cabinet of Ministers on 4 May 2026. The Plan reflects a broad consensus among government institutions, private sector experts, and international development partners.

In line with the national vision of “A Thriving Nation – A Beautiful Life”, the Plan has been formulated to enhance Sri Lanka’s export competitiveness and achieve an export revenue target of USD 36 billion by 2030.

The core vision of the Plan is to transform Sri Lanka into a competitive logistics and knowledge-based export hub serving regional and global markets. The strategy is based on two key interconnected pillars: “horizontals” and “verticals”, which together provide the foundation for strengthening export competitiveness, diversification, and sustainable growth.

The horizontal enablers, which support the growth and expansion of all priority sectors, include logistics and integrated hub operations, trade facilitation, trade finance and reforms in the business and investment environment, trade promotion and market linkages, quality management, standards, environmental, social and governance (ESG) capacity development, as well as entrepreneurship and innovation.

The Plan also identifies eight priority export sectors to enhance export diversification and value addition, and to position Sri Lanka more competitively in global markets. These include automotive components, mineral-based industries, rubber-based industries, maritime industries (including boat and shipbuilding), spices and concentrates, digital products and services, electrical and electronic equipment, and processed food and beverages.

The preparation of the Plan involved contributions from over 300 stakeholders, including government institutions, the private sector, civil society organisations and international development partners. Broad consensus was achieved through consultations held from October to December 2025 and workshops conducted in January 2026.

The Government expects that, with implementation supported by strong governance and monitoring framework, the Plan will elevate local products to international standards and ensure long-term economic stability and growth. It is further anticipated that the National Export Development Plan will serve as a key driver of Sri Lanka’s economic progress in the years ahead.

Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Senior Additional Secretary to the President and Secretary to the Ministry of Energy Russell Aponso, Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, and Chairman of the Sri Lanka Export Development Board Mangala Wijesinghe were also present at the event.

[PMD]

Business

Handunnetti unveils state-led mineral strategy to unlock hidden wealth

Published

9 hours ago

2026/06/17

Sahan Weerasooriya

Sunil Handunnetti

The government’s decision to ban the export of mineral resources in raw form and place all future mineral exploration under state control has triggered fresh debate over how Sri Lanka should develop its untapped mineral wealth and attract foreign investment.

Announcing the new National Mineral Policy, Industry and Entrepreneurship Development Minister Sunil Handunnetti said the country had long failed to capture the full value of its mineral resources by exporting them with minimal processing.

“We will no longer allow mineral resources to leave the country in raw form,” the minister said, arguing that Sri Lanka must move towards value-added industries that generate greater economic returns.

A key feature of the new policy is the transfer of all mineral exploration activities to the state-run Geological Survey and Mines Bureau (GSMB). Under the new system, the GSMB will carry out exploration, publish geological data and subsequently invite investors to participate in commercially viable projects.

Handunnetti defended the move by citing what he described as the failure of the previous licensing regime. According to government figures, 471 exploration licences had been issued since 1993, but only 28 advanced to mining operations, with just 12 remaining active today. The minister alleged that some companies had used exploration licences to boost corporate valuations rather than develop actual mining projects.

He also stressed that mineral deposits located beneath privately owned land belong to the state and should be developed in the national interest.

However, the reforms are likely to attract close scrutiny from foreign investors seeking opportunities in Sri Lanka’s mineral sector.

An independent industry analyst said the policy’s emphasis on value addition is consistent with global trends, as countries increasingly seek to process critical minerals domestically rather than export raw materials.

“The more difficult question is whether a state-controlled exploration model can generate the confidence required by international investors,” the analyst said. “Investors will want access to reliable geological data, transparent licensing procedures and predictable regulations before committing significant capital.”

The analyst noted that the government’s plan to publish exploration data before inviting investment proposals could help improve transparency, but its success would depend on how scientifically the process is implemented.

Sri Lanka possesses commercially valuable deposits of graphite, mineral sands, ilmenite, rutile, garnet, silica and phosphate. As global demand for industrial and strategic minerals continues to grow, the new policy represents a significant test of whether stronger state involvement can translate geological potential into investment, industrial development and export earnings.

“The success of the strategy may ultimately depend on whether the government can balance tighter control over mineral resources with the policy certainty and commercial incentives that international investors typically seek,” the analyst said.

By Sanath Nanayakkare