• Ushering in an era of inclusive and sustainable businesses

The year 2022 marked a turning point for Sri Lanka. Economic challenges served as a wake-up call, prompting the nation to embark on a journey toward a more resilient and inclusive future. 

Delivering the 2023 Budget Speech in Parliament, President Ranil Wickremesinghe outlined his vision for a new economic order that is modern, competitive, export-oriented, and private sector-led. Implicit in this vision is the evolution of a private sector that is driven by the ideals of inclusivity and sustainability. 

The National Strategy to Promote Inclusive and Sustainable Businesses (ISB Strategy) to achieve the Sustainable Development Goals (SDGs), recently approved by the Cabinet of Ministers, is a cornerstone of this vision and represents a paradigm shift, harnessing the transformative power of purpose-driven businesses to pave the way for a brighter tomorrow.

The vision of ISBs

Imagine a business ecosystem where profit isn’t the sole driving force. Picture how companies can actively weave positive social and environmental impact into the very fabric of their operations. Think of how businesses can empower rural women through fair wages and market access or how they can support smallholder farmers with sustainable agricultural practices. Envision businesses tackling climate change with innovative solutions like wind-powered irrigation. 

These are just glimpses into the world of Inclusive and Sustainable Businesses (ISBs), demonstrating that businesses’ commercial success and societal well-being can be harmonious bedfellows.

ISBs: A catalyst for positive impact

ISBs operating in areas such as renewable energy, circular economy, sustainable agriculture, etc. can play a pivotal role in creating positive impacts on society and the environment. 

For instance, businesses that invest in renewable energy can contribute not only to mitigating climate change but also to providing potential sustainable solutions for communities. Wind power, for example, can offer a clean and renewable energy source, reducing reliance on fossil fuels and potentially minimising the carbon footprint. This can not only address environmental concerns but also create jobs and stimulate economic growth in the renewable energy sector.

Similarly, the circular economy, a fundamental principle for many ISBs, can promote resource efficiency and environmental protection. Businesses engaged in upcycling and waste management can potentially reduce the environmental impact of waste and create opportunities for economic growth. For instance, a company that transforms discarded materials into new products can minimise waste and contribute to the creation of a circular supply chain, fostering sustainability from production to consumption.

Another compelling business case is that of a sustainable agriculture-focused company. Through its innovative approach, the company can potentially connect smallholder farmers with markets, ensuring a fair and stable income for farmers while promoting sustainable farming practices. By facilitating access to markets, the company can uplift rural communities and contribute to overall food security in the region.

ISBs offer innovative solutions to a range of societal challenges. Empowering women through flexible work models and skills training can unlock their economic potential and bridge the gender gap. For instance, an ISB focusing on empowering women in rural areas can provide training, leading to increased financial independence and improved living standards.

These hypothetical business cases showcase how ISBs can potentially go beyond profit-making and actively contribute to addressing societal challenges and environmental concerns. They serve as inspirations for other businesses to adopt similar models and potentially contribute to the overall well-being of Sri Lanka.

Building a resilient ecosystem for ISBs

For ISBs to flourish, a supportive ecosystem is essential. The Government can play a crucial role by providing policy frameworks, incentives, and capacity-building programmes. Policy measures that encourage sustainable practices and offer financial and other non-financial incentives for ISBs can create an environment conducive to their growth.

The private sector must step up by integrating sustainability into their core operations and actively partnering with other ISBs. Collaborations between established businesses can lead to the exchange of knowledge, resources, and market access. This can accelerate the mainstream adoption of sustainable business practices, creating a more significant impact on the economy and society.

Intermediary organisations can contribute by potentially building the ecosystem through linking ISBs with investors, providing technical assistance, and promoting awareness. Creating platforms that facilitate connections between ISBs and investors can help secure funding for their initiatives. Technical assistance in areas such as sustainable business practices and technology adoption can further enhance the capabilities of ISBs.

The National ISB Strategy as a call to action

The formulation of a comprehensive strategy to promote Inclusive and Sustainable Businesses (ISB Strategy) marks a pivotal moment in the country’s economic trajectory. The ISB Strategy – developed by the Sustainable Development Council of Sri Lanka under the technical guidance of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) – underscores a commitment to fostering high-quality inclusive growth through the private sector. Anchored by five strategic pillars, the plan positions ISBs as key drivers in achieving the SDGs by 2030.

The strategy’s pillars encompass a holistic approach to integration, awareness, capacity-building, information accessibility, and financial support for ISBs. It sets out to seamlessly integrate ISBs into mainstream economic plans, positioning Sri Lanka as a global hub for inclusive and sustainable production and exports in alignment with international sustainability standards. 

The emphasis on raising awareness and recognition through a nationwide campaign and forums aims to showcase local success stories, enhancing the visibility and credibility of ISBs. Concurrently, a focus on building capacities recognises the challenges faced by ISBs and proposes a roadmap for their development, aligning existing Government-led programmes and fostering collaborations with private entities and academic institutions. 

The strategy also addresses the vital aspects of access to information and impact reporting by facilitating partnerships with certification bodies, incentivising participatory guarantee systems, and promoting technology-driven traceability for transparency. Lastly, the strategy acknowledges financing gaps and suggests a roadmap to connect ISBs with diverse financing opportunities, including the creation of multi-tiered impact investment funds and risk-reduction mechanisms.

Way forward

In conclusion, Sri Lanka’s Strategy to Promote Inclusive and Sustainable Businesses is not just a document but a call to action. It signifies the Government’s dedication to catalysing private sector innovation and collaboration, forging a pathway toward a resilient and equitable economy. 

By creating an enabling ecosystem for ISBs to thrive, replicate successful models, achieve scale, and contribute significantly to SDGs, the strategy invites active participation from investors, business owners, and individual consumers. This collaborative effort seeks to unlock a future where prosperity, sustainability, and inclusivity seamlessly intertwine, shaping a brighter and more equitable tomorrow for all Sri Lankans.