3rd Global Networking conference onResource Efficient and Cleaner Production

in Developing and Transition Countries4-5 September,

Montreux, SwitzerlandSustainable Supply Chains

in Sri Lanka

Eng V R Sena PeirisDirector,

National Cleaner Production Centre, Sri Lanka

Area: 65,000 sqkm

Population: 20 million

National GDP; US$ 59 Billion

GDP Growth : 6.4%

Per capita GDP US$ 2923

Main Economic sectors

TeaRubberCoconutAgricultureApparelTourismIndustry

Greening Sri Lanka National Action Plan

The overarching Environmental Policy for the country

10 MISSIONS

Greening the Supply chain

Policy InstrumentsIn 2010 under a Switch Asia Project funded

by EU in Sri Lanka for Food and Beverage Sector, 9 policy instruments were recommended by a panel of Experts to the Ministry of EnvironmentGreen ReportingGreen Public ProcurementExtended Producer Responsibility

Current SituationSeveral discussions held with National

Planning department under Ministry of Finance

Agreed on preparation of procurement Guidelines for selected procurement categories

Initially only 20% of the purchases of Government departments will be under Green Procurement

Current situation07 Categories selected

SuppliesMaintenance of Furniture and equipmentAcquisition of Furniture and Equipment (Plant

& Machinery, Furniture and Office Equipment)Acquisition and maintenance of BuildingsAcquisition and maintenance of Plant and

machinery Acquisition and Maintenance of vehiclesServices

Current situation

Top Decision makers are sensitizedProcurement Officers are trainedAll organizational consumers (Employees)

were provided awarenessAdded costs/benefits are being evaluatedManufacturers/Suppliers are made aware on

future requirements on Greening their supplies/services

Criteria for Selection of Suppliers?Self Declaration by SuppliersMember of Sustainable Reporting systemISO 14001 /ISO 50001 certifiedCarbon Emissions certified/ Carbon NeutralEco Labels/ Energy labels

Eco labeling in Sri LankaThree initiatives since 2008.So far no final Eco Labeling programEnergy labeling for selected products is in

progress (CFLs, Fans, Refrigerators,……)

Desired BenefitsGreening of small scale local manufacturersGreening of suppliers/importersReduction of solid wastes ending in landfillsEnhance local recycling industryReduce hazardous substances in industryReducing hazardous emissions to

environment

Challenges and BarriersGovernment subsidies to some

environmentally unfriendly productsLack of financial benefits (differential taxing)

for environmentally friendly productsCost differentialsResistance from procurement personnel due to

underhand benefits from traditional suppliersJustification of higher costs during financial

auditsResistance to change

Greening value ChainA new trend is established by a few key

enterprises in Sri Lanka for extending the greening across the entire value chain.

Examples: Tourism IndustryApparel Industry

Suppliers Customers

World’s first Carbon Neutral Bra

Kandalama Hotel, Sri Lanka

Green value Chain InitiativesOffering Planting of a tree/s to offset the

carbon footprint of the GuestTrees cared by a villager and Guest pays an

annual donationHotel take the responsibility for management

of the tree

Hotel buys fruits/vegetables from nearby farmers

Ensure organically grown/carbon footprint is low

Offers an organic food corner to guests

Organic Tea

Offer Premium Quality healthy product to customers

Pressurizes growers to use organic fertilizer and natural pest control techniques

Water Footprint is controlled

Carbon footprint reduced

Thank you

Contact Details

Eng V R Sena PeirisNational Cleaner Production Centre251/30,Kirula Road Narahenpita Colombo 05

Tel :0094 11 2369601/2Fax :0094 11 2369603

Email: ncpcsl@ncpcsrilanka.org

Web: www.ncpcsrilanka.org