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Friday, April 21, 2023

Sustainable Solutions for Sri Lanka's Economic Revival: The Case for a Green Economy

The COVID-19 pandemic, and political and economic crisis have created unprecedented economic challenges for countries around the world, and Sri Lanka is no exception. In the wake of the crisis, there is an urgent need for the country to identify sustainable solutions to revive its economy. One approach that is gaining traction is the adoption of a green economy, which promotes environmentally conscious practices while also driving economic growth. This article will explore the potential of a green economy for Sri Lanka and highlight the latest statistical information to support this approach.

Table-01: Sri Lanka's renewable energy potential

(Source: Sri Lanka Sustainable Energy Authority, 2021)

Additionally, Sri Lanka has significant potential for offshore wind power, estimated at 12,000 MW (Source: Asian Development Bank, 2020).

On the topic of sustainable tourism, it is worth noting that in 2019, tourism accounted for 5.5% of Sri Lanka's GDP and employed 387,000 people (Source: World Travel and Tourism Council, 2019).

For carbon trading, Sri Lanka has the potential to earn up to USD 80 million per year through the sale of carbon credits (Source: Ministry of Mahaweli Development and Environment, 2018).

 

Simplifying the Bureaucratic System to Attract International Investors

One of the key challenges that Sri Lanka faces in attracting international investors is its bureaucratic system. The process for obtaining permits and approvals can be lengthy and complex, which can deter investors who are looking for a more streamlined process. To overcome this, Sri Lanka needs to simplify its bureaucratic system, making it easier for investors to navigate and obtain the necessary permits and approvals quickly. This will help to attract more foreign direct investment, which is essential for economic growth.

Huge Potential for Wind and Solar Power

Sri Lanka has enormous potential for renewable energy, particularly in the areas of wind and solar power. According to the Sri Lanka Sustainable Energy Authority, the country has the potential to generate up to 50,000 MW of solar power and up to 6,000 MW of wind power. This represents a significant opportunity for Sri Lanka to move towards a green economy, reduce its dependence on fossil fuels, and achieve energy security.

Promoting Green Energy with the Private Sector

There is no way of promoting green energy without the involvement of the private sector. Sri Lanka needs to create an enabling environment that encourages private sector investment in renewable energy. This can be done by providing incentives such as tax breaks, subsidies, and other forms of support to companies that invest in green energy. This will not only help to drive the adoption of renewable energy but also create new jobs and stimulate economic growth.

Opening Doors for Chinese and Indian Investments

Sri Lanka has already attracted significant investments from China and India, and there is potential for more in the renewable energy sector. Both countries are leaders in renewable energy and have the technology and expertise to help Sri Lanka develop its renewable energy infrastructure. By opening doors for Chinese and Indian investments, Sri Lanka can benefit from their knowledge and expertise while also building stronger economic ties with these countries.

President Wickremesinghe's Strong Commitment to a Green Economy

President Wickremesinghe has made a strong commitment to promoting a green economy and mitigating climate change. In 2017, Sri Lanka launched its National Climate Change Policy, which outlines the country's commitment to reducing its greenhouse gas emissions and transitioning to a low-carbon economy. The policy also identifies renewable energy as a key component of Sri Lanka's efforts to combat climate change.

Lucrative Opportunities in Carbon Trading

Carbon trading is a lucrative opportunity for Sri Lanka to create more jobs and income for its people. Under the Paris Agreement, Sri Lanka has committed to reducing its greenhouse gas emissions by 7% by 2030. To achieve this, the country can participate in the global carbon market by selling its carbon credits to other countries that have exceeded their emissions targets. This will not only help Sri Lanka to achieve its emissions reduction targets but also generate new revenue streams and create new jobs.

Fast Approvals with Proper Environmental Laws

To attract investment in renewable energy, Sri Lanka needs to provide a simple and fast process for investors to get approvals, while also ensuring that proper environmental laws are followed. This will help to build investor confidence and attract more investment in the sector.

Huge Potential for Green Hydrogen

Sri Lanka has a huge potential for green hydrogen by promoting offshore wind power. Green hydrogen is produced by using renewable energy sources such as wind and solar power to electrolyze water, producing hydrogen gas and oxygen. This is a zero-emissions process that can be used as a fuel for transport, heating and power generation. Sri Lanka's potential for offshore wind power, combined with its strategic location in the Indian Ocean, makes it an ideal location for the production and export of green hydrogen. This could become a major source of revenue and job creation for the country.

Preparing Agriculture for Changing Temperature and Water Patterns

As the climate changes, Sri Lanka's agriculture sector will face significant challenges. Changes in temperature and water patterns will affect crop yields and could lead to food insecurity. To mitigate these risks, Sri Lanka needs to invest in climate-resilient agriculture practices such as crop diversification, soil conservation, and efficient irrigation systems. This will help to ensure that the country's agriculture sector remains productive and sustainable in the face of climate change.

The development of sustainable tourism

In addition to the points highlighted above, Sri Lanka also needs to prioritise the development of sustainable tourism, which has the potential to bring in significant revenue while promoting environmental conservation. The country's stunning natural beauty, including its beaches, wildlife, and forests, can be preserved while also generating income through eco-tourism.

Furthermore, the government should work to promote sustainable transport options, such as electric vehicles and public transport, to reduce carbon emissions and air pollution. This will not only benefit the environment but also improve the quality of life for Sri Lanka's citizens.

Finally, education and awareness-raising programmes on environmental protection and sustainability should be prioritised at all levels of society, from schools to government agencies. This will help to create a culture of environmental responsibility and sustainability, which is essential for long-term economic growth and social well-being.

Sri Lanka's economic revival can only be achieved through sustainable solutions that balance economic growth with environmental protection. A green economy offers a promising way forward, with vast potential for renewable energy, carbon trading, and sustainable agriculture and tourism. However, to fully realise this potential, Sri Lanka needs to create an enabling environment for private sector investment, simplify its bureaucratic system, and prepare its agriculture sector for the changing climate. With the right policies and investments, Sri Lanka can lead the way in sustainable economic growth and become a model for other countries to follow.

Conclusion

Sri Lanka's economic revival in the post-COVID era requires a sustainable and environmentally conscious approach. A green economy offers a viable solution that can simultaneously address economic growth and environmental protection. The latest statistical information highlights the enormous potential for renewable energy, particularly in the areas of wind and solar power, as well as carbon trading and green hydrogen. However, to achieve this potential, Sri Lanka needs to simplify its bureaucratic system, create an enabling environment for private sector investment, and prepare its agriculture sector for the changing climate. With the right policies and investments, Sri Lanka can lead the way in sustainable economic growth and become a model for other countries to follow.

 References:

Sri Lanka Sustainable Energy Authority. (2021). Renewable Energy Generation Statistics. Retrieved from https://www.energy.gov.lk/web/index.php?option=com_content&view=article&id=141&Itemid=153&lang=en

Asian Development Bank. (2020). Sri Lanka's Power Sector: Investment Opportunities for Renewable Energy Development. Retrieved from https://www.adb.org/sites/default/files/publication/571001/sri-lanka-power-sector-investment-opportunities-renewable-energy.pdf

World Travel and Tourism Council. (2019). Travel & Tourism Economic Impact 2019 Sri Lanka. Retrieved from https://www.wttc.org/-/media/files/reports/economic-impact-research/countries-2019/sri-lanka2019.pdf

Ministry of Mahaweli Development and Environment. (2018). Sri Lanka's National REDD+ Strategy. Retrieved from https://redd.mahaweli.gov.lk/web/images/pdf/redd%20strategy%20final%20version%20-%20en.pdf

 

 

 

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