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Case study

2024 • Central Environmental Authority (CEA), Sri Lanka Using a National Grant Program to Develop Composting in Sri Lanka

The Pilisaru Project, launched in 2008 by the Sri Lankan government, aimed to develop municipal composting capacity across the country. With $40 million in funding, the project has constructed over 115 municipal composting facilities, successfully integrating organic waste treatment into urban waste management. By providing capital grants for construction and training, the project has improved waste diversion and created nutrient-rich compost, supporting sustainable agriculture and reducing reliance on landfills.

Recovered Materials & Products

Compost

Waste Streams

Organic solid waste

Confirmed countries

Mexico

Background and Context 

Location: Sri Lanka 

Resource Stream: Municipal solid waste, including organic and biodegradable waste 

Challenges: In 2014, Sri Lanka generated 6,400 tonnes of MSW daily, with 62% being biodegradable. Improper disposal of organic waste in open dumps led to environmental hazards, such as leachate contamination and methane emissions. Previously, composting initiatives faced challenges due to dependency on subsidies and lack of operational sustainability. 

Technologies/Methods Used 

Windrow Composting: Facilities use low-cost windrow systems to process organic waste into compost. 

Preprocessing: Mixed MSW is segregated to remove inert materials and improve feedstock quality. 

Nutrient Enhancement: Co-composting with nutrient-rich inputs, including animal waste and rock phosphate, improves the compost's agronomic value. 

Implementation Steps 

The Pilisaru Project provided grants for construction, equipment, and training, eliminating debt obligations for local authorities. 115 composting plants were constructed, with 76% having capacities ≤5 MTPD, and training programs for plant workers and awareness campaigns for waste segregation were implemented to ensure operational efficiency. Compost was sold through government-supported distribution channels to promote adoption by farmers. 

Outcomes and Impacts 

  • Environmental Benefits: Diversion of 400 MTPD of organic waste from landfills; reduced greenhouse gas emissions and leachate contamination.
  • Economic Contributions: Sale of compost at $0.05–$0.12/kg provided revenue streams for municipalities. Facilities achieved cost recovery, reducing reliance on subsidies. 
  • Social Impact: Increased awareness and adoption of source segregation by communities. Improved soil fertility in agricultural regions 

Lessons Learned 

  • Financial Independence: Eliminating operational subsidies has driven composting facilities toward financial sustainability. 
  • Policy Alignment: Strong government commitment and subsidies for infrastructure were critical to the program's success. 
  • Market Barriers: Competition with subsidized synthetic fertilizers limits compost adoption, requiring ongoing awareness efforts and market development. 

Learn more

This case study is extracted from the publication linked below: "Sustainable Financing and Policy Models for Municipal Composting. World Bank (2016)"

https://openknowledge.worldbank.org/entities/publication/e1aac77a-5258-5927-9268-847c754cb9f5

Technologies

Composting

Themes

Financing and investment
Policy and regulation