Industry dialogue drives action on a green recovery for Sri Lanka’s manufacturing sectors

Almost 150 key players from across government, industry, the financial sector and civil society came together in Colombo at the end of March to discuss what Sri Lanka’s manufacturers need to build a sustainable and secure future.

Sri Lanka is in recovery mode following the worst economic crisis in its history. During the crisis, imported fossil fuels on which the country relies ran dry, wreaking further havoc on businesses and the economy. At the same time, the climate crisis has increased flooding and other extreme weather events in Sri Lanka, affecting crops, lives and livelihoods.

For Sri Lankan industries, the need to reduce energy waste and move to locally-produced, sustainable energy sources has never been greater. Doing this will slash harmful greenhouse gas emissions and build the energy security that Sri Lanka’s businesses need – not only to recover but to thrive.

Now in its second year, the Industry Dialogue provides a forum to discuss the technologies, policies and financing mechanisms needed for industry’s green recovery. Here are the key moments.

Industry Support 2024 - Photo 1 opening remarks by Dr Johann Hesse, Head of Cooperation, The European Union Delegation to Sri Lanka and Maldives

Opening remarks by Dr Johann Hesse, Head of Cooperation, The European Union Delegation to Sri Lanka and Maldives

During the dialogue’s opening session, Dr Johann Hesse, Head of Cooperation for the European Union Delegation to Sri Lanka and Maldives, spoke of the many benefits of transitioning Sri Lankan industries to a low-carbon future. Dr Hesse said: “By reducing energy waste and greenhouse gas emissions, industries will not only chart a more sustainable path to economic growth, but will also help the country meet its climate goals and energy security. We are happy to assist Sri Lanka to meet the goals it has committed to achieve.”

The Industry Dialogue is part of an EU-funded, five-year initiative to support Sri Lankan industries to decarbonize, which is led by the Ministry of Environment, the Ministry of Industries and the Ministry of Power and Energy with technical support from UNIDO.

Industry Support 2024 - Photo 2 opening remarks Mrs. Thilaka Jayasundara, Secretary, Ministry of Industry

Opening remarks Mrs. Thilaka Jayasundara, Secretary, Ministry of Industry

In her opening remarks, Thilaka Jayasundara, Secretary of the Ministry of Industry, called for industrial decarbonization to be “at the heart of the country’s economic recovery from the energy crisis of the past two years”. She added: “This means that manufacturing processes should become greener by shifting away from fossil fuels, scaling-up renewable energy, and adopting energy-efficient solutions.”

Industry Support 2024 - Photo 3 Session 1

Session 1: Setting the stage: Igniting an evidence-based and inclusive industrial decarbonization

An expert panel revealed the findings of ground-breaking ‘diagnostic research’, conducted by the Ministry of Industries, UNIDO and Global Efficiency Intelligence (GEF). The research analysed energy use and emission trends in the country’s four biggest manufacturing sectors (textiles and apparels, food and beverages, rubber production and cement), and the challenges and opportunities being experienced when it comes to adopting sustainable technologies and much-needed energy efficiency measures.

Presenting the research, Dr. Ali Hasanbeigi [pictured far left], CEO and Research Director at GEF, stressed the importance of collecting and sharing key data on things such as sector-specific emissions.

He said: “Once you have the data and you make it public, there are a lot of smart people here – engineers, professors, PhD students – who can get this data and do some analysis …That can help with the decision making and policymaking, and [lead to] more informed planning and decisions in the country. Data – as boring as it may sound, as basic it may sound – is very, very important.”

Industry Support 2024 - Photo 4 Malarmathy Gangatharan

Intervention by Ms. Malarmathy Gangatharan, Director General (Development Finance), Department of Development Finance, Ministry of Finance

Expert panellist Malarmathy Gangatharan, Director General of Development Finance at the Ministry of Finance, described how the data collected for the diagnostic report on things such as energy use will help to inform future government planning.

She said: “The apparel industry is the heaviest high-energy consuming [industry] and it is the [most] important [manufacturing] industry for the economy…But I’m very much surprised [that] food and beverage is the second largest energy consumer [within manufacturing]…This has opened our eyes [and in] the future [it will help us] plan how to make it so that this industry can consume less energy.”

Industry Support 2024 - Photo 5 Session 2

Session 2: The role of energy efficiency in Sri Lanka’s decarbonization and the achievements after one year of EnMS intervention

A roundtable discussion at the event focused on the crucial role that energy efficiency plays in industrial decarbonization. The session celebrated the achievements of some of the Sri Lankan manufacturers that have already participated in the internationally recognized energy management systems training, which UNIDO and Sri Lanka’s National Cleaner Production Centre runs through the programme.

Measures adopted by the first group of energy management trainees reduced energy consumption within Sri Lankan industries by 6.9 GWh and greenhouse gas emissions by 5,400 metric tons. This is equivalent to removing over 1,000 petrol cars from the road for a whole year.

Mendaka Hettithanthri [pictured far left], Head of Engineering at Teejay Lanka, who participated in the training, said: “Whatever we learnt in class, we went back to our facilities, to our plants, to our factories, [and] it started making sense.”

Asanka Manoj [pictured second from right], Assistant General Manager of Production and Facility at Flintec, said that energy management must become a team effort within companies: “Everyone, from the production floor to the top management, can contribute to energy management.”

Industry Support 2024 - Photo 6 Ms. Arosha Hemali is a Technical Consul- tant at INOVA Environmental Service

Intervention by Ms. Arosha Hemali is a Technical Consul- tant at INOVA Environmental Service

As part of the roundtable discussion, Arosha Hemali described how the energy management systems training she participated in has helped her hone her expertise as an energy consultant and lecturer. Ms Hemali, who has gone on to support many businesses to reduce their energy waste and is a proud member of the Energy Savers campaign, said: “I have really [been] empowered with the practical knowledge [to] apply that into industry.”

Industry Support 2024 - Photo 7 crowd shot

Around 80 people from across industry, government, finance and civil society attended the dialogue. Participants were carefully invited to represent a mix of sectors, expertise and genders. The day included time for networking so that those in the room could exchange contacts and continue discussions after the event ended. Sharing knowledge and best practices and working collaboratively are essential to achieving the green recovery that Sri Lankan industries need.

Watch the event highlights video