Abstract:
Recycling of plastic waste provides both financial and economic benefits. Plastic recycling
is one of the best strategies that have been initiated in Sri Lanka in the area of waste
management. Mainly the National Post Consumer Plastic Waste Management Project
managed by the Central Environmental Authority (CEA) engages in facilitation and
promotion of plastic recycling activities in Sri Lanka. This study aimed to find out the
financial performance and viability of mechanical plastic recycling activities in the Western
Province.
All mechanical plastic recycling centres in the Western Province were divided into three
categories as; large, medium and small, based on the average amount of plastic waste
recovered per month. Two medium scale centers and one small scale centre were included
in the study. Management of these centers agreed to cooperate with the study team by
providing information on costs and benefits of operations. Financial cost benefit analysis
was conducted for three recycling centres. Information on prices and quantities of activities,
and other relevant data were gathered through in-person interviews and telephone
conversations. A pre-tested structured questionnaire was used in collecting data. Financial
benefit cost analysis was conducted separately for the study entities. A time horizon of 20
years for projects and the discount rate of 10% was used in the analysis. Net present value
and benefit cost ratio criteria were used as measures of project worth.
According to the results, net present value (NPV) of all three projects is positive. All three
entities show benefit cost ratio (BCR) values greater than one. It can be concluded that,
the plastic recycling business in small and medium scale categories irrespective of their
scale of waste recovery amount, are viable for 20 years from the financial point of view.
