As Sri Lanka’s business landscape evolves, questions about ethical practices, climate risks, sustainability and the use of technology are becoming more relevant for micro, small, and medium enterprises (MSMEs) and emerging ventures. These questions shaped the recent Climate 2.0* dialogue in Colombo, where entrepreneurs, technology professionals, MSMEs, innovators and sustainability practitioners gathered to reflect on the future of social impact-driven entrepreneurs in Sri Lanka.
Sri Lanka’s economic recovery has highlighted the limitations of relying solely on traditional business practices. The National Digital Economy Strategy 2030 outlines a vision for a more digitally enabled and efficient future. For MSMEs, this raises important questions about what such shifts mean in daily operations and how they can build the systems, skills, and accountability required to adapt.
One idea that was discussed was the importance of understanding an organisation’s carbon footprint. It is often described as the organisational DNA, because it describes the total amount of CO2 and other greenhouse gas (GHG) emissions for which an individual or organisation is responsible.1 But the discussion made it clear that this is only the first step. Sustainability- the developments that meet the needs of the present without compromising the ability of future generations- needs to be grounded in strong foundational layers such as measurable indicators, baseline data, clear reporting systems, and policies on ethics and responsible sourcing. These are what give credibility to any climate-friendly claim.
Technology plays a significant role in strengthening sustainability practices. Digital tools make it easier to track energy use, cut waste, and measure the impact that has been created through different initiatives. AI is helping businesses analyse their footprints with more accuracy than ever before. At the same time, many local MSMEs face challenges in adopting new tools, particularly as technologies evolve rapidly. Participants noted that without the right foundational systems, even the most advanced tools cannot deliver meaningful results.
A practical example of these dynamics came from the tourism sector. During the discussion, a slow travel entrepreneur shared how a clear mission, well-defined policies, and transparent values helped them attract conscious travellers. Technology strengthened this approach by improving communication, reducing waste, and making day-to-day operations more efficient. These experiences also point to Sri Lanka’s wider potential in responsible tourism, where digital tools can help visitors understand the environmental impact of their choices and support more sustainable travel behaviour.
One challenge highlighted in Climate 2.0 was the issue of technology replication. Local entrepreneurs often end up recreating tools that already exist due to limited access to global patents, legal protection, or technical guidance. Participants noted that stronger incubation support, better awareness of existing technologies, and improved systems for protecting and scaling local innovation would help address this gap. These measures would reduce unnecessary reinvention and enable businesses to adapt proven solutions to the Sri Lankan context more effectively.
Interest in climate solutions is rising at the micro level with many entrepreneurs experimenting with homegrown ventures, new products, and greener services. The landscape is shifting quickly. Renewable energy options are spreading. People and planet thinking is becoming more common in early-stage business decisions. However, the discussion emphasised that economic sustainability needs to come first. Many climate-driven startups struggle because they attempt to scale environmental objectives before establishing financial stability. Building a solid business foundation was identified as an essential step toward achieving longer-term climate impact.
Technology is also making communication easier than ever. Reaching customers, talking to suppliers, and managing tasks no longer require heavy systems. For MSMEs, simple digital tools can unlock significant climate benefits. Participants discussed how tracking energy use, monitoring water consumption, or optimising basic processes often creates some of the biggest sustainability gains. In many cases, sustainability starts with optimisation, not expensive solutions.
The co-founder of Star Mushrooms, Nimesha Perara, who is also a member of the EthicalX food systems cohort, shared her experience. Star Mushrooms, a venture that initially relied on traditional farming methods, has transitioned to high-tech greenhouse systems that improve efficiency and reduce waste. Their experience demonstrated how thoughtful use of technology can transform even well-established industries. She also mentioned that the EthicalX-supported digital communication and social media strategy has helped her to reach new customer segments and create awareness.
The discussion also pointed to the growing interest in plant-based innovation. Sri Lanka has the potential to become a regional leader in this space. The story of the Netherlands after World War II is often shared as inspiration. The country invested deliberately in innovation and technology to rebuild its food system and eventually became a global agricultural powerhouse. The discussion noted that Sri Lanka could chart its own path by learning from these examples while avoiding mistakes such as over-dependence on resource-intensive production. To move in this direction, however, the country will need stronger policy support, targeted financing instruments, and openness to foreign expertise where needed. The National Digital Economy Strategy 2030 reinforces this direction by promoting stronger policy support, targeted financing for innovation, and collaboration with global expertise to drive inclusive, technology-driven growth.
Startups face their own unique challenges. Defining a vision, documenting values, and pursuing certifications all take time and money. Early-stage companies often struggle with this. The discussion highlighted that learning from previous examples, adapting what works, and maintaining a clear sense of purpose can help guide decision-making. A clear vision serves as an anchor that helps climate-friendly businesses navigate uncertainty.
All these ideas point toward a broader message. Ethical entrepreneurship in Sri Lanka is not only about being environmentally friendly. It is about shaping a future where technology and sustainability reinforce each other. It is about building businesses that are competitive, resilient, and socially responsible.
Sri Lanka has the capacity and the creativity to move in this direction. When innovation, values, and purpose align, the country can build an economy that works for both people and the planet. CimaComms’ Climate 2.0 gatherings aim to contribute to this process by creating open and collaborative spaces where ideas, experiences, and practical solutions can be shared.
* Climate 2.0 is an initiative for informal discussions dedicated to climate conversations by SLYCAN Trust.
The ClimaComms programme established by SLYCAN Trust aims to advance evidence-based and innovative forms of climate communications and empower climate communicators. Through capacity-building on technical aspects related to climate change and providing spaces for enhancing and scaling up climate literacy and communication processes, ClimaComms engages communicators and media professionals from across the world to build climate awareness, raise climate literacy, and contribute to scaling up evidence- and science-driven climate action at all levels.
EthicalX: Climate & Innovation Hub is an initiative by SLYCAN Trust which supports ethical, sustainable, and climate-friendly entrepreneurship through activities related to capacity-building, provision of technical support and expertise, and raising seed funding with a special focus on vulnerable communities, women, and youth. EthicalX works towards building long-term climate resilience, sustainable development, and economic empowerment to scale up entrepreneurship development and support vulnerable communities, women and youth.
Thilini works as a Research and Programme Officer at SLYCAN Trust, and works on thematic areas of climate change, mangroves, and agricultural insurance. Her areas of interest include coastal ecosystems and climate change. Thilini has a BSc in Fisheries and Marine Sciences from the Ocean University of Sri Lanka. She has a diploma in Information Technology and E-Commerce from the Esoft Metro Campus. She also completed an 8-week internship in the Marine Biological Resources Division at the National Aquatic Resources Research and Development Agency (NARA). Her experience in fisheries, coastal sciences, ocean sciences, and seafood technology led her to publish her first research paper at the Ocean University of Sri Lanka.
As Sri Lanka’s business landscape evolves, questions about ethical practices, climate risks, sustainability and the use of technology are becoming more relevant for micro, small, and medium enterprises (MSMEs) and emerging ventures. These questions shaped the recent Climate 2.0* dialogue in Colombo, where entrepreneurs, technology professionals, MSMEs, innovators and sustainability practitioners gathered to reflect on the future of social impact-driven entrepreneurs in Sri Lanka.
Sri Lanka’s economic recovery has highlighted the limitations of relying solely on traditional business practices. The National Digital Economy Strategy 2030 outlines a vision for a more digitally enabled and efficient future. For MSMEs, this raises important questions about what such shifts mean in daily operations and how they can build the systems, skills, and accountability required to adapt.
One idea that was discussed was the importance of understanding an organisation’s carbon footprint. It is often described as the organisational DNA, because it describes the total amount of CO2 and other greenhouse gas (GHG) emissions for which an individual or organisation is responsible.1 But the discussion made it clear that this is only the first step. Sustainability- the developments that meet the needs of the present without compromising the ability of future generations- needs to be grounded in strong foundational layers such as measurable indicators, baseline data, clear reporting systems, and policies on ethics and responsible sourcing. These are what give credibility to any climate-friendly claim.
Technology plays a significant role in strengthening sustainability practices. Digital tools make it easier to track energy use, cut waste, and measure the impact that has been created through different initiatives. AI is helping businesses analyse their footprints with more accuracy than ever before. At the same time, many local MSMEs face challenges in adopting new tools, particularly as technologies evolve rapidly. Participants noted that without the right foundational systems, even the most advanced tools cannot deliver meaningful results.
A practical example of these dynamics came from the tourism sector. During the discussion, a slow travel entrepreneur shared how a clear mission, well-defined policies, and transparent values helped them attract conscious travellers. Technology strengthened this approach by improving communication, reducing waste, and making day-to-day operations more efficient. These experiences also point to Sri Lanka’s wider potential in responsible tourism, where digital tools can help visitors understand the environmental impact of their choices and support more sustainable travel behaviour.
One challenge highlighted in Climate 2.0 was the issue of technology replication. Local entrepreneurs often end up recreating tools that already exist due to limited access to global patents, legal protection, or technical guidance. Participants noted that stronger incubation support, better awareness of existing technologies, and improved systems for protecting and scaling local innovation would help address this gap. These measures would reduce unnecessary reinvention and enable businesses to adapt proven solutions to the Sri Lankan context more effectively.
Interest in climate solutions is rising at the micro level with many entrepreneurs experimenting with homegrown ventures, new products, and greener services. The landscape is shifting quickly. Renewable energy options are spreading. People and planet thinking is becoming more common in early-stage business decisions. However, the discussion emphasised that economic sustainability needs to come first. Many climate-driven startups struggle because they attempt to scale environmental objectives before establishing financial stability. Building a solid business foundation was identified as an essential step toward achieving longer-term climate impact.
Technology is also making communication easier than ever. Reaching customers, talking to suppliers, and managing tasks no longer require heavy systems. For MSMEs, simple digital tools can unlock significant climate benefits. Participants discussed how tracking energy use, monitoring water consumption, or optimising basic processes often creates some of the biggest sustainability gains. In many cases, sustainability starts with optimisation, not expensive solutions.
The co-founder of Star Mushrooms, Nimesha Perara, who is also a member of the EthicalX food systems cohort, shared her experience. Star Mushrooms, a venture that initially relied on traditional farming methods, has transitioned to high-tech greenhouse systems that improve efficiency and reduce waste. Their experience demonstrated how thoughtful use of technology can transform even well-established industries. She also mentioned that the EthicalX-supported digital communication and social media strategy has helped her to reach new customer segments and create awareness.
The discussion also pointed to the growing interest in plant-based innovation. Sri Lanka has the potential to become a regional leader in this space. The story of the Netherlands after World War II is often shared as inspiration. The country invested deliberately in innovation and technology to rebuild its food system and eventually became a global agricultural powerhouse. The discussion noted that Sri Lanka could chart its own path by learning from these examples while avoiding mistakes such as over-dependence on resource-intensive production. To move in this direction, however, the country will need stronger policy support, targeted financing instruments, and openness to foreign expertise where needed. The National Digital Economy Strategy 2030 reinforces this direction by promoting stronger policy support, targeted financing for innovation, and collaboration with global expertise to drive inclusive, technology-driven growth.
Startups face their own unique challenges. Defining a vision, documenting values, and pursuing certifications all take time and money. Early-stage companies often struggle with this. The discussion highlighted that learning from previous examples, adapting what works, and maintaining a clear sense of purpose can help guide decision-making. A clear vision serves as an anchor that helps climate-friendly businesses navigate uncertainty.
All these ideas point toward a broader message. Ethical entrepreneurship in Sri Lanka is not only about being environmentally friendly. It is about shaping a future where technology and sustainability reinforce each other. It is about building businesses that are competitive, resilient, and socially responsible.
Sri Lanka has the capacity and the creativity to move in this direction. When innovation, values, and purpose align, the country can build an economy that works for both people and the planet. CimaComms’ Climate 2.0 gatherings aim to contribute to this process by creating open and collaborative spaces where ideas, experiences, and practical solutions can be shared.
* Climate 2.0 is an initiative for informal discussions dedicated to climate conversations by SLYCAN Trust.
The ClimaComms programme established by SLYCAN Trust aims to advance evidence-based and innovative forms of climate communications and empower climate communicators. Through capacity-building on technical aspects related to climate change and providing spaces for enhancing and scaling up climate literacy and communication processes, ClimaComms engages communicators and media professionals from across the world to build climate awareness, raise climate literacy, and contribute to scaling up evidence- and science-driven climate action at all levels.
EthicalX: Climate & Innovation Hub is an initiative by SLYCAN Trust which supports ethical, sustainable, and climate-friendly entrepreneurship through activities related to capacity-building, provision of technical support and expertise, and raising seed funding with a special focus on vulnerable communities, women, and youth. EthicalX works towards building long-term climate resilience, sustainable development, and economic empowerment to scale up entrepreneurship development and support vulnerable communities, women and youth.
