A high-level meeting organized by the Central Province Governor’s Office to discuss a major waste-to-energy project was abruptly cancelled this week, prompting a senior representative of a German investment firm to exit the country in frustration, potentially putting a US$100 million foreign direct investment at risk.
The investor, representing the German company Recycle Energy, had travelled to Sri Lanka to finalize discussions on a pilot project aimed at converting municipal solid waste in Kandy and surrounding urban areas into commercially viable energy and agricultural by-products. However, the unexpected cancellation of the meeting left the foreign delegate “disheartened and disillusioned,” a local spokesperson for the company said.
“The investor felt let down and returned home immediately,” the spokesperson added, warning that the cancellation could signal bureaucratic instability and damage investor confidence in Sri Lanka.
The proposed project was designed to process 125 metric tons of solid waste daily, with plans to produce organic fertilizer, generate electricity to power a cold storage facility for agricultural products, and establish a plastic recycling plant in a subsequent phase.
Although the Cabinet had approved the initiative during a previous administration, political turbulence stalled its implementation. Following the formation of the new government, the German investors had shown fresh interest in reviving the deal, only to encounter procedural setbacks that now threaten to derail the entire venture.
Recycle Energy had positioned the project as a sustainable solution to Sri Lanka’s mounting waste management crisis, offering both environmental and economic benefits, including job creation and technological innovation in the renewable energy sector.
Analysts note that Sri Lanka is in dire need of foreign direct investment, particularly in infrastructure and green energy sectors.
However, administrative inefficiencies and political unpredictability continue to act as deterrents, even as the country attempts to recover from a severe economic downturn.
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