Introduction: Green is the New Growth Strategy
Sustainability is no longer a corporate checkbox — it’s a competitive edge. As climate change accelerates and consumer behavior shifts, businesses across the globe are rethinking how they operate. But in Sri Lanka, where natural beauty is a national asset and economic recovery is tightly linked to environmental resilience, sustainable business is becoming a smart business model — not just a moral imperative.(Green Pioneers)
From tea to textiles, Sri Lankan companies are integrating sustainability into their core strategy. They’re proving that profitability and planet-positive practices can — and should — go hand in hand.
The old approach treated sustainability as part of corporate social responsibility — a department, a donation, or a feel-good campaign. But 2025 demands more. Investors, regulators, and consumers are now asking tougher questions:
This shift is global. BlackRock, the world’s largest asset manager, says companies that ignore ESG (Environmental, Social, and Governance) risks will be left behind. In Sri Lanka, too, major exporters are being asked to prove their environmental compliance and social impact.
Dilmah is more than a tea company — it’s a case study in ethical entrepreneurship. From day one, founder Merrill J. Fernando positioned the brand on a promise of “business with purpose.” Today, the MJF Charitable Foundation and Dilmah Conservation are integral to the business model, not afterthoughts.
The company practices biodiversity protection, invests in community upliftment, and maintains complete supply chain traceability — making it a model for global ethical trade.
As one of South Asia’s largest apparel exporters, MAS has put sustainability at the center of its innovation. Their “Plan for Change” outlines ambitious goals: zero landfill waste, circular production, and renewable energy.
With smart fabrics, sustainable dyeing processes, and carbon-reduction technologies, MAS shows that green manufacturing can still meet global demand and design expectations.
Hela Clothing, with its operations across East Africa and Sri Lanka, emphasizes local empowerment and environmental care. Its ESG reporting, water conservation initiatives, and support for women in manufacturing position it as a truly global green enterprise.
Beyond values and ethics, sustainable business practices yield clear economic advantages:
In short, the return on investment in sustainability is tangible — and growing.
Sustainability isn’t just for big corporations. Sri Lankan small and medium enterprises (SMEs) are also turning green — not through huge budgets, but through clever innovation.
Examples include:
Simple strategies like switching to LED lighting, minimizing packaging, composting waste, or sourcing from local suppliers can have outsized impacts — both for the environment and the bottom line.
For exporters and manufacturers, a large part of sustainability lies in the supply chain. This means:
Tech-enabled traceability systems, blockchain certifications, and eco-labeling can help companies communicate these efforts to global buyers.
Sri Lanka’s Export Development Board (EDB) and National Chamber of Exporters (NCE) now offer green trade guidance and tools for businesses entering these markets.
Sri Lanka’s government has recognized the strategic value of sustainability, especially as part of its post-crisis recovery. Key developments include:
However, gaps remain — particularly in enforcement, awareness among small businesses, and integration of sustainability metrics into mainstream lending and taxation.
To accelerate progress, the private sector must lead — but the state must follow with aligned regulation and infrastructure.
Environmental, Social, and Governance (ESG) reporting is now expected by foreign partners, shareholders, and even customers. This includes:
Some Lankan firms are voluntarily publishing Sustainability Reports aligned with GRI (Global Reporting Initiative) standards.
Meanwhile, green financing — including ESG-linked loans and bonds — is gaining traction. International lenders like the Asian Development Bank (ADB) and IFC are funding green initiatives across Sri Lanka, especially in energy, agriculture, and manufacturing.
Millennials and Gen Z employees increasingly want to work for companies that align with their values. Businesses with strong sustainability narratives report higher engagement and lower attrition.
This means sustainability isn’t just an external brand play — it’s a workplace culture strategy.
Offering opportunities for employees to participate in eco-initiatives — like tree-planting, green innovation labs, or sustainability-focused CSR — builds purpose and pride in the workplace.
The future belongs to companies that are lean, green, and purpose-driven. For Sri Lankan businesses, the shift is already underway — from the tea estates of Hatton to the factories of Katunayake, from the shores of Hikkaduwa to the boardrooms of Colombo.
Green business isn’t a luxury — it’s survival strategy, a market differentiator, and a moral obligation rolled into one. The smartest companies are embedding sustainability not at the end of the chain, but at the center of strategy.
As the global economy moves toward circular models, ethical sourcing, and conscious consumption, the only question left is: Will your business be part of the future, or be left behind?
