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Sustainability, esg & corporate responsibility News

140 articles

### 📉 SLMMF Provides Relief to Journalists Hit by Cyclone Ditwah

The Sri Lanka Muslim Media Forum (SLMMF) has completed a multi-phase humanitarian mission to support 36 journalists nationwide following the catastrophic impact of Cyclone Ditwah. The initiative addresses the often-overlooked economic vulnerability of media professionals during national disasters. • Overall Relief Impact The programme provided essential aid to journalists across 7 districts: Colombo, Kandy, Puttalam, Gampaha, Badulla, Kegalle, and Anuradhapura. Support included financial assistance, professional equipment replacement, and essential household goods. • Sectoral & Economic Context Cyclone Ditwah (Nov 2025) caused an estimated US$ 4.1 Bn (4% of GDP) in direct physical damage. While the agriculture sector suffered US$ 814 Mn in losses, the media sector faced significant operational disruptions. SLMMF highlighted that journalists—integral to the ICT/BPM and information landscape—suffered personal livelihood and equipment losses while serving as first responders. • Inclusivity & Support Network • Beneficiaries: 36 journalists from Sinhalese, Tamil, and Muslim communities. • Key Partners: Qatar Charity Sri Lanka, JJ Foundation, and the Colombo District Mosques Federation. • Recovery: Replacement of professional tools was prioritized for media personnel in flood-hit Colombo to ensure the resumption of essential reporting duties. _Note: Figures based on SLMMF reports and World Bank GRADE provisional data._

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## 🏥 Swiss Foundation Donates Rs. 200Mn Angiography System to Karapitiya Hospital

A state-of-the-art Philips Azurion 3M12 angiography machine, donated by the Heart Clinic Foundation of Switzerland, was officially handed over to the Karapitiya Teaching Hospital to bolster healthcare infrastructure in the Southern Province. • Investment & Logistics: The system is valued at over Rs. 200 million. The Ministry of Health contributed Rs. 55 million in customs duties, while the hospital invested Rs. 25 million for infrastructure to house the unit. • Operational Capacity: This marks the second operational Cardiac Catheterisation laboratory at Karapitiya, making it the only state hospital outside Colombo with two functioning Cath labs. • Impact on Healthcare: Service Reach: Serves a population of 2.7 million in the Southern Province, plus residents of Sabaragamuwa and Uva. Waitlist Reduction: Expected to reduce the current cardiac treatment waiting list to approximately one year (down from longer periods). Medical Advancement: Allows for minimally invasive interventions, helping patients avoid high-risk open-heart surgeries. • National Context: While there are 15 angiography machines in the government sector, only about 8 are typically operational. The Ministry of Health aims to bridge this gap by acquiring 11 additional machines next year to strengthen the medical services sector and improve human capital health. • Strategic Partnership: The donation was facilitated through collaboration between the Heart Clinic Foundation of Zurich and the Swiss Ambassador to Sri Lanka, highlighting the role of international grants in supporting Sri Lanka’s social infrastructure.

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📈 Sri Lanka’s Post-Cyclone Recovery: Speed vs. Resilience

President Anura Kumara Dissanayake’s 2026 New Year message emphasized recreating a "far better" nation following the devastating Cyclone Ditwah. However, analysts warn against prioritizing rapid restoration over long-term structural integrity. • Economic Impact & Damage Provisional data from the World Bank’s GRADE report estimates direct physical damage at US$ 4.10 Bn (~4% of GDP). Total recovery and reconstruction needs are projected to reach up to US$ 7.00 Bn. The Central Province was hardest hit, with Kandy district alone suffering US$ 689 Mn in losses. • Infrastructure & Connectivity Infrastructure accounts for the largest share of damage at US$ 1.74 Bn (42% of total). While 99% of the 200+ damaged roads were reportedly restored within a month, experts question if these "quick fixes" meet international geotechnical and safety standards to withstand future climate risks. • Sector Breakdowns • Agriculture: US$ 814 Mn in losses; 20% of Maha season paddy sowings damaged, affecting 227,000 farmers. • Housing: US$ 985 Mn damage; 15,000+ homes destroyed. • Transport: Fixing railway tracks alone is estimated to cost over US$ 330 Mn. • Fiscal Response The Government has proposed a Rs. 500 Bn supplementary estimate for 2026. This includes Rs. 250 Bn for critical infrastructure and Rs. 100 Bn for housing. The budget deficit is expected to rise by 1.4% to 6.5% of GDP due to these recovery costs.

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Sri Lanka Advancing Circular Economy & Sustainable Manufacturing 📈

The 2nd International Conference on Circular Economy and Sustainable Ecosystem (IC2ESE 2025) concluded at the Open University of Sri Lanka, focusing on transitioning the nation from traditional linear models to regenerative systems. • Core Objective: Strengthening the link between academic research and industrial application, specifically supporting the MSc in Energy for Circular Economy to develop skilled professionals for the national energy transition. • Sector Insights: • Manufacturing: Industry leaders called for a shift from "take-make-dispose" to circular production. This aims to enhance industrial competitiveness and reduce waste/emissions through resource efficiency and material recovery. • Energy & Transport: Technical sessions focused on energy technologies, sustainable transport, and material circularity to align with Sri Lanka's Sustainable Development Goals (SDGs). • Education: Experts highlighted the role of research-based learning and policy alignment in preparing the workforce for a low-carbon economy. • Strategic Outlook: The transition is viewed as vital for meeting Sri Lanka’s Nationally Determined Contributions (NDCs). Key enablers identified include policy support, green finance mechanisms, and cross-sector collaboration to build a resilient industrial economy. _Based on conference proceedings and official addresses._ Would you like me to find more details on Sri Lanka's specific Nationally Determined Contributions (NDCs) for the manufacturing sector?

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UN Warns World Unprepared for Escalating Climate Disasters ⚠️

The United Nations has issued a stark warning that the world is increasingly vulnerable to extreme weather events, with current systems, financing, and infrastructure falling short of handling the accelerating pace of climate-related disasters. • Global Preparedness Gap: UN Resident Coordinator Marc-André Franche stated that despite more frequent and intense extreme weather, global and national preparedness has not kept pace. He emphasized that the world will suffer many more disasters in the coming years and decades. • Shrinking Aid & Competition: Nations are struggling with overlapping crises while global humanitarian financing shrinks due to governments diverting budgets to domestic priorities. Sri Lanka faces stiff competition for international aid as countries like Vietnam, Indonesia, and Thailand also grapple with simultaneous climate disasters, alongside major humanitarian crises elsewhere. • Call for Climate-Resilient Development: Franche urged governments, including Sri Lanka, to use post-disaster recovery as a turning point to rebuild stronger, safer, and climate-smart infrastructure rather than replicating past vulnerabilities. • Avoid High-Risk Areas: The UN asserts the need for climate-resilient rebuilding and avoiding resettlement in historically flood-prone or high-risk areas. Proactive investment in protection measures, like along the Kelani River, is crucial and cheaper than repeated post-disaster relief.

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📈 Sri Lanka's Tourism Boom: Experts Urge Sustainable Growth

Intrepid Travel Asia–Australia MD Natalie Kidd highlights Sri Lanka's surging popularity and stresses the need for sustainable destination management to safeguard its future. • Rapid Growth: Sri Lanka broke into Intrepid Travel's global top 10 in 2024, with arrivals doubling in 2024, and projected to grow 50% in both 2025 and 2026. • Warning Signs: Unmanaged tourism risks include rising global carbon emissions (10% of global total), anti-tourism protests, and over-tourism impacting local needs. • Strategic Shift Needed: Urges Sri Lanka to prioritize quality visitors over unchecked numbers, adopt strategic destination management, and set carrying capacities to protect natural and cultural assets. • Sustainability as a Competitive Edge: Visitors increasingly choose destinations with strong environmental and community standards. A third of European travellers may change destinations if sustainability is lacking. • Key Recommendations: • Protect biodiversity, heritage sites, and local traditions. • Address waste, water management, and ethical wildlife tourism. • Increase community inclusion, especially for women in visible industry roles. • Diverse Appeal: Sri Lanka's beaches, culture, wildlife, and adventure offer year-round appeal and enable higher-value segments. • Call to Action: Government and public-private collaboration are crucial to implement practical steps for a value-driven, sustainable tourism future.

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Sri Lanka Grapples with Cyclone Ditwah Devastation & Economic Recovery 📈

Sri Lanka faces immense challenges after Cyclone Ditwah, resulting in: • Human Toll: Over 600 deaths reported, with counting ongoing. • Housing Damage: 5,165 houses completely destroyed, 57,312 partially damaged. • Economic Impact: Estimated US$ 7 billion in infrastructural and economic damage, impacting the nation's 2026 growth target of 5%. • Government Response: President Anura Kumara Dissanayake expresses confidence in recovery with state, foreign, and local support, despite critics citing neglected early warnings and environmental aspects of development projects. The article also highlights a broader global issue: • Increasing Disasters: An average of 417 natural disasters occurred annually over the last decade, with experts warning of increased frequency due to changing weather patterns and rising sea levels. • "One-Dimensional Economies": The text critiques modern economic systems driven by technological rationalism and consumerism, which prioritize growth (GNP) over environmental sustainability, leading to reckless resource depletion. • Historical Warnings: Intellectuals like Marcuse, Veblen, and reports like the 1972 "Limits to Growth" have long warned about the dangers of unchecked industrialization and resource use. • Global Efforts Challenged: International treaties like the Paris Accord (COP21) aim to limit global warming, but challenges remain, notably the US withdrawal and lobbying from major MNCs impacting environmental initiatives. An "environment-friendly economic paradigm" is urged as essential for long-term immunity from natural havoc.

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Warning: Exclusive Planning Risks Failed Post-Disaster Rebuilding in Sri Lanka ⚠️

• Governance Alarm: Strong criticism leveled at the Government's appointment of an all-male corporate committee to manage post-Cyclone Ditwah rebuilding funds, citing the risk of an "opportunity seeking game" and corporate capture. • Stakeholder Exclusion: The exclusive planning process is heavily criticized for ignoring key actors necessary for an inclusive transformation: • Provincial Councils: Ignoring the constitutional three-tiered structure and the need for decentralised assessment, as impact scale varies across provinces. • Social Groups: No representation for women, youth (despite the Aragalaya), or civil society, who are vital for inclusive and sustainable development (SDG5). • Corporate Risk: The committee is seen as potentially composed of figures from sectors like tea and garments who have previously been involved in exploiting natural and human capital, suggesting a profit-over-sustainability approach. • Call for System Change: The author insists the Government must not sub-contract its primary responsibility and must use this disaster as a mandatory opportunity for "Systems Change." Rebuilding must move away from the "exploitative and destructive development model." • Strategic Path: A call to Recalibrate systems and converge economic planning with climate sustainability. The required approach is to Reimagine resource mobilization, Reorganise resource governance, and Reinvest in transformational pathways.

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🚨 Cyclone Ditwah Exposes Critical Gaps in SL Health & Disaster Systems

• Human Toll: The cyclone has resulted in a death toll of 355+ and rising, with over 200,000 displaced, heavily impacting the central hills and low-lying river basins. • Infrastructure Risk: A considerable number of hospitals and medical centres operate in high flood and landslide-risk areas, making facilities themselves vulnerable and disrupting access to care. • Epidemiological Threat: The physical exposure quickly creates an epidemiological risk. Flood-prone districts are already where some of the highest average annual dengue and leptospirosis cases are reported, suggesting a likely "second wave" of climate-sensitive illnesses. • Systemic Failure: The disaster response ecosystem is fragmented due to ad hoc coordination between the Ministry of Health and the Disaster Management Centre (DMC). Frontline workers lack integrated dashboards, relying on informal, siloed information during crises. • Urgent Solutions (IPS Call): An urgent call for "Digital Fortification" is proposed, requiring: An integrated emergency coordination platform to connect the DMC, MoH, hospitals, and field staff. A climate and health surveillance system that combines real-time climate/hazard data with routine disease reporting to issue specific health warnings. • Way Forward: Sri Lanka must transform its disaster preparedness by upgrading and linking existing digital health tools to build a more intelligent and anticipatory system as climate disasters become more frequent.

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🇱🇰 Teejay Lanka Leads Regional Sustainable Supply Chain Initiative 📈

Teejay Lanka PLC has been appointed Patron of the UN Global Compact Network Sri Lanka’s Sustainable Supply Chain and SMEs Working Group, highlighting its role in driving ethical and transparent practices within the apparel & textiles sector. • Climate & Decarbonisation: The company’s emission reduction targets have been validated by the Science Based Targets initiative (SBTi). The FY 2024/25 total GHG inventory was 676,666.38 t CO₂ eq. Scope 3 emissions represent approximately 85% of the total, underscoring the focus on value-chain accountability (Purchased Goods/Services and Processing of Sold Products). • Traceability & Digital: Teejay utilizes a multi-platform digital framework (TextileGenesis, Origin) for raw material traceability. It is developing a QR Traceability Project to align with future EU regulations like the Digital Product Passport (DPP) and CSRD. • Circularity & Waste: The company achieved a remarkable 64% overall waste-diversion rate in FY 2024/25 (38% recycled, 26% reused), supporting its Abhivarah 2030 'Waste to Wealth' vision. • ESG Performance: High operational standards were confirmed by exceptional average Higg FEM scores (Teejay Lanka 99%, Teejay India 97%, Teejay Prints 91%). The firm is also aligning its reporting with IFRS Sustainability Disclosure Standards (S1 and S2) from FY 2024/25. Teejay’s role involves building capacity for SMEs and suppliers to meet global sustainability benchmarks, acting as a crucial bridge between regional manufacturers and international buyers.

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📈 SL Boards: Shifting from Survival to Sustainability Governance

The global conversation on sustainability is moving from mere compliance to strategic governance, demanding greater board accountability and competency. • New Era of Governance: The introduction of IFRS S1 and S2 signals that sustainability is now linked directly to financial governance and board accountability, positioning it as a path to resilience and shared value for Sri Lankan companies. • Competency & Accountability: • Competency must be demonstrable—not self-declared—to properly oversee risks like climate resilience, fair work, and resource efficiency. Accountability without competency is fragile. • Accountability must be cascaded through the organisation using measurable, tangible KPIs. Boards should prioritize leading indicators (e.g., project completion) that measure execution over purely outcome-based metrics. • Strategic Integration: Sustainability must be embedded into Enterprise Risk Management (ERM) to holistically assess exposure and capitalize on transition opportunities. • SL Context & Way Forward: • Sri Lankan boards must shift their focus from survival to deeply integrating sustainability into growth strategies, risk frameworks, and performance measurement (Anushka Wijesinha). • The entire board must understand double materiality, balancing financial impact (IFRS) with societal/environmental impact (GRI) for long-term credibility. • Linking remuneration to verified sustainability metrics, though currently limited in Sri Lanka, is a powerful lever to signal shared performance responsibility.

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📈 SL Faces US$ 7–10 Bn Annual SDG Funding Gap; First Impact Fund Launched

A new report by the Lanka Impact Investing Network (LIIN) highlights critical structural financing gaps needed to achieve Sustainable Development Goals (SDGs): • Investment Gap: An estimated annual investment demand of US$ 7–10 Bn is required for sustainable development. • Infrastructure: US$ 3–5 Bn annually. • Climate Finance: US$ 2–3 Bn annually. • Women-led enterprises: Face a US$ 695 M financing shortfall. • SME Constraint: SMEs, which contribute 52% to GDP, remain severely underfinanced. Access to credit is constrained by high interest rates (10–27%) and demanding collateral requirements. The number of active SMEs has declined from 1.3 M (2018) to 1.04 M (2024). • Banking Sector: Institutional lending for Environmental, Social, and Governance (ESG) portfolios by commercial banks is currently less than 2% of total lending. • New Initiative: LIIN is launching Sri Lanka's first Impact Enterprise Fund, initially capitalised at US$ 5 M, to specifically target the financing gaps for SMEs and startups. • Key Feature: The Fund includes a first-loss guarantee covering up to 20% of potential defaults, aimed at boosting investor confidence. • Target Sectors: Investments (US$ 50k–100k) will target agriculture, tourism, IT, healthcare, and apparel, with deployment expected by mid-2026. The Fund aims to serve as a prototype for future blended finance vehicles and accelerate the evolution of Sri Lanka's capital markets.

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