EU, GIZ

The European Union (EU), in collaboration with the German Federal Ministry of Economic Cooperation and Development, and the Government of Sri Lanka launch the three-year CIRCULAR Economy in the Food Sector Programme, aimed at tackling food losses and reducing food and single-use plastic waste. 

With the goal of supporting government policies and efforts, CIRCULAR will identify, promote, and scale up investment opportunities, and find innovative socio-economic and technological solutions that promote circular economy principles.

“The CIRCULAR program shows what the European Union’s Global Gateway strategy stands for by creating new opportunities for investments while addressing critical needs, such as food loss and plastic waste. Our 15 million euro grant contribution for CIRCULAR shows the European Union’s commitment to support the Government of Sri Lanka and partners in creating a safe environment for businesses to thrive”, says the EU Ambassador, Carmen MORENO. 

Sri Lanka faces significant food loss from production to wholesale and high levels of food and single-use plastic waste throughout the supply chain, including in households.  The island generates 4,000 metric tonnes of food waste daily, or 56.6% of total municipal solid waste, and approximately 342,000 metric tonnes of plastic waste annually, out of which 68% is mismanaged or uncollected. At the same time, approximately 6.3 million Sri Lankans — 29% of the population — still struggle with food insecurity.  

In line with the government of Sri Lanka’s priorities, CIRCULAR includes the following elements: 

Finding alternatives to single-use plastic

CIRCULAR will address the issue of single-use plastic (SUP) in the food sector and encourage to use alternatives in Sri Lanka. The program will work with producers and consumers, both private and public, to make Sustainable Consumption and Production practices available in order to reducing SUP. Additionally, the program will support businesses involved in reducing food waste and loss, as well as in innovating around SUP reduction. This initiative will help existing businesses and create new opportunities to transition from a linear economy to a circular economy by improving access to sustainable financing.

Reducing food loss and waste through circular economy

CIRCULAR will support local agri-food stakeholders in selected locations to reduce food loss and waste through business and circular economy literacy. Island-wide initiatives will focus on enabling investment through multi-actor networking. Pilot projects will explore solutions for food loss and waste reduction, recovery of safe and nutritious food for human consumption, feed from former foodstuffs, biogas, and composting. Youth will be targeted for circular entrepreneurial literacy. 

Opening doors to investment opportunities for Sri Lankan SMEs 

CIRCULAR is fostering innovation and sustainability within Sri Lanka’s food sector. The programme aims to create sustainable, inclusive businesses that contribute to the reduction of food waste/loss as well as single-use plastics, while also integrating circular economy and entrepreneurship principles into Vocational Training Centre curricula. CIRCULAR will include the Investment Readiness and Business Development Programme, onboarding interested businesses to accelerate their journey toward sustainability and resilience.