Circular economy policy framework for promoting sustainable construction practices in Sri Lankan construction industry: stakeholder perception

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2026

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Department of Building Economics

Abstract

Circular economy has emerged as a promising strategy to mitigate environmental impacts and foster sustainable development. Although Sri Lanka has implemented several regulations and policies aimed at promoting sustainability in construction, actual progress remains limited. This research mainly investigates stakeholder perceptions regarding developing a circular economy policy framework tailored specifically for the Sri Lankan construction industry. Furthermore, the study reviews global CE policy frameworks, assessing both top-down and bottom-up approaches, and evaluates the current state of CE practices in Sri Lanka. Moreover, it identifies key barriers influencing the adoption of CE policies within the sector. Adopting a mixed-method approach, the research gathers qualitative data through a comprehensive literature review and semi-structured interviews, while quantitative data is collected from Likert-scale questionnaires distributed to industry stakeholders. Analytical techniques include the Relative Importance Index (RII), thematic analysis, and content analysis. Findings indicate that CE adoption in Sri Lanka is currently minimal, primarily due to the absence of effective regulations and policy enforcement. However, stakeholder responses suggest a moderately positive perception towards the development of a CE policy framework. The study highlights the necessity of introducing mandatory regulations and tailored policies to enable effective CE implementation. Key recommendations include establishing design guidelines for dismantlable and reusable buildings, developing a CE certification system similar to the Green Rating System, promoting multi-use building designs, implementing green financing options, restricting landfill disposal of reusable materials, and offering tax incentives to companies that comply with CE requirements. These context-specific strategies aim to advance sustainable construction practices in Sri Lanka.

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Karunarathna, E.H.K.K., Perera, B.L.S.H. & Kalugala, C.S. (2026). Circular economy policy framework for promoting sustainable construction practices in Sri Lankan construction industry: stakeholder perception. In K.G.A.S. Waidyasekara, H.S. Jayasena, H. Chandanie, & G.A. Tennakoon (Eds.), World Construction Symposium – 2026 : 14th World Construction Symposium (pp. 377-390). Department of Building Economics, University of Moratuwa. https://doi.org/10.31705/WCS.2026.28

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