Colombo: The European Union funded CIRCULAR project launched an Access to Finance Strategy for promoting Circular Economy investments in the food sector on 28 October at the Granbell Hotel in Colombo. The event was inaugurated by Dr. Johann Hesse, Head of Cooperation at the Delegation of the European Union to Sri Lanka and the Maldives. Representatives from the Ministry of Environment, the food sector, financial institutions, academia, and development partners took part in the event, supporting efforts to transition Sri Lankan agri and food sector towards a circular economy.
According to Nam News Network, the CIRCULAR project, implemented by Expertise France, the Food and Agriculture Organization of the United Nations (FAO), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), aims to reduce food waste and loss and single-use plastics by promoting circular business models and fostering innovation in the food sector. The initiative contributes to strengthening resilience against food crises and climate change while supporting Sri Lanka’s green transition.
“Today, we take a step forward in our partnership with Sri Lanka to overcome these challenges to finance investments to enable the transformation into a circular economy. These challenges are not unique to Sri Lanka; rather, they are shared globally. This initiative embodies a shared vision between the European Union, and its Global Gateway strategy, and Sri Lanka – one that seeks not only to enhance our collaborative efforts but to transform our commitments into tangible and meaningful action,” said Dr. Hesse at the event.
Presenting key findings from the Diagnostic and strategy report Financing Circular Economy Investments in the Food Sector in Sri Lanka, Habbipriya Karthigesan, Sustainable Finance Specialist at Expertise France, highlighted that food businesses face high upfront costs, long payback periods, and limited technical expertise to adopt profitable circular practices. On the supply side of financing, financial institutions often perceive circular investments as risky and seek third-party validation.
Bridging financing gaps in the circular economy requires collective action, said Ms. Habbipriya. Businesses need guidance to identify and develop bankable proposals, while financial institutions must reassess and adapt traditional risk frameworks. Several market actors can play an enabling role in validating and building confidence in circular financing.
Building on these insights, the CIRCULAR project developed its Access to Finance Strategy around building evidence and demonstrating the business case for Circular Economy in the food sector. It also supports businesses requiring USD 500,000 to USD 5 million for their circular transition through mentoring, circular clinics, and investor matchmaking. Furthermore, it strengthens financial sector capacity by facilitating knowledge transfer with European banks for embedding risk assessment tools and for developing tailored financial products. Partnering with enabling market actors that can provide circular technologies, solutions, certifications, and expertise to address perceived investor risks is another key aspect of the strategy.
The launch event also featured a panel discussion titled “Farm to Finance: Unlocking Capital for Circular Food Systems,” moderated by Ms. Shayani Weeresinghe, Sustainable Business Specialist at Expertise France. Panelists included Ms. Dilanthi Ranaweera, Head of ESG, Silvermill Group of Companies, Mr. Indrajith Boyagoda, Secretary General of the Sri Lanka Banks Association and Dr. Nuwan Gunarathne, Director of the Research Center for Management Studies and Commerce at the University of Sri Jayewardenepura. The discussion explored how market actors can integrate circularity across food systems and build investor confidence for accessing sustainable financing.