The European Union-funded CIRCULAR project has launched an Access to Finance Strategy to promote Circular Economy investments in Sri Lanka’s food sector. The strategy was presented during an event on 28 October at the Granbell Hotel in Colombo, which included the launch of the Diagnostic and Strategy Report titled “Financing Circular Economy Investments in the Food Sector in Sri Lanka.” The report identifies challenges on both the demand and supply sides of financing and highlights opportunities for market actors to integrate circular practices across food systems while building investor confidence for sustainable financing. Representatives from the Ministry of Environment, financial institutions, the food sector, academia, and development partners attended the event to support Sri Lanka’s transition towards a circular economy.
Implemented by Expertise France, the Food and Agriculture Organization (FAO), and GIZ, the CIRCULAR project aims to reduce food waste, food loss, and single-use plastics by fostering innovation and promoting circular business models in the food sector. The initiative strengthens resilience against food crises and climate change while supporting Sri Lanka’s broader green transition. Dr. Johann Hesse, Head of Cooperation at the EU Delegation to Sri Lanka and the Maldives, emphasized the shared global challenges in financing circular investments and the collaborative vision between the EU’s Global Gateway strategy and Sri Lanka to translate commitments into tangible action.
The Diagnostic and Strategy Report highlighted several barriers for food businesses, including high upfront costs, long payback periods, and limited technical expertise to implement circular practices. Financial institutions often perceive circular investments as risky and require third-party validation. Habbipriya Karthigesan, Sustainable Finance Specialist at Expertise France, noted that bridging these financing gaps requires collective action, including guidance for businesses to develop bankable proposals and for financial institutions to adapt risk assessment frameworks.
Building on these insights, the CIRCULAR project’s Access to Finance Strategy focuses on demonstrating the business case for circular economy in the food sector, supporting businesses requiring USD 500,000 to USD 5 million for circular transitions through mentoring and investor matchmaking, strengthening financial sector capacity through knowledge transfer with European banks, and partnering with enabling market actors to provide technologies, certifications, and expertise to address investor risks.
The launch also featured a panel discussion, “Farm to Finance: Unlocking Capital for Circular Food Systems,” moderated by Shayani Weeresinghe from Expertise France. Panelists included Dilanthi Ranaweera, Head of ESG at Silvermill Group of Companies; Indrajith Boyagoda, Secretary General of the Sri Lanka Banks’ Association; and Dr. Nuwan Gunarathne, Director at the University of Sri Jayewardenepura. The discussion explored ways for market actors to integrate circularity across food systems and build confidence among investors for accessing sustainable financing.
