Implementing Circular Economy Practices in Apparel Manufacturing Sector in Sri Lanka: Explore Challenges and Opportunities
Anju Parami Jayavilal
Department of Commerce, University of Sri Jayewardenepura, Gangodawila, Sri Lanka.
Vilani Sachitra *
Department of Commerce, University of Sri Jayewardenepura, Gangodawila, Sri Lanka.
*Author to whom correspondence should be addressed.
Abstract
Background: Circular economy encourages environment protection and social prosperity while giving the green light to economic growth with sustainable development in a country. The apparel industry both globally and Sri Lanka faces considerable environmental challenges and it is recognized as a major consumer of water.
Aim: This study seeks to identify the challenges and opportunities of adopting circular economy practices to enhance resource efficiency in the apparel manufacturing industry of Sri Lanka, under social, environmental, and economic aspects.
Methods: Within the apparel industry, circular design, product life extension, textile recycling, and resource efficiency were identified as key circular economy practices. Qualitative research approach was adopted to identify the social, environmental, and economic aspects of circular economy adoption. Target population consisted of key stakeholders in Sri Lanka’s apparel manufacturing sector, including lean managers, sustainability officers, supply chain professionals, and employees involved in circular economy-related practices. Given the qualitative nature of this study, a purposive sampling strategy was adopted to select 4 respondents. A semi-structured interview used as the primary method of data collection and content analysis used to identify key factors through participants’ responses.
Results: The results revealed that circular economy is understood among Sri Lankan apparel manufacturers as a strategic shift from linear “take-make-dispose” model to a closed-loop system that keeps materials in use for as long as possible. Despite facing notable challenges such as high initial costs, limited infrastructure, and low awareness, companies are making steady progress through innovation, collaboration, and commitment to sustainability goals. The social findings revealed the need for awareness and training to drive behavioral change, while environmental results confirmed significant achievements in waste reduction, water reuse, and carbon footprint minimization. Economically, although initial investments are high, long-term cost savings, market differentiation, and stronger buyer relationships make circular adoption a viable and strategic direction for the industry.
Implications: Apparel manufacturers in Sri Lanka need to implement circular economy principles as port of their core business strategy rather than as isolated sustainability projects. Capacity building in employees and suppliers through continuous awareness and training program; collaborating across the supply chain actors, leveraging circularity for brand differentiation; developing the supportive policy frameworks; expanding recycling and waste management infrastructure and establishing regulatory and certification system would encourage to take part in circular transformation.
Further Study: This study focused on the manufacturing perspective; future research could explore consumer behavior, buyer expectations, and government policy roles in enabling circular transformation.
Keywords: Apparel sector, barriers, circular economy, enables, sustainability.