Empowering Local Entrepreneurs to Combat Climate Change in Sri Lanka

2024 LOCAL ADAPTATION CHAMPIONS AWARD NOMINEE

Sri Lanka faces increasing challenges from climate change, including rising temperatures, unpredictable rainfall patterns, and more frequent natural disasters. These environmental shifts threaten the livelihoods of small-scale entrepreneurs across the country, particularly in sectors such as agriculture, tourism, and fashion. As local businesses struggle to adapt, vulnerable communities—especially women and youth—are at the greatest risk of being left behind. In response to these escalating threats, EthicalX, a program initiated by SLYCAN Trust, is stepping up with an innovative solution that combines climate action with sustainable entrepreneurship.

Fostering Climate Resilience from the Ground Up

EthicalX is no ordinary climate initiative. It’s a transformative program designed to empower small-scale entrepreneurs with the tools, knowledge, and networks they need to thrive in a changing climate. With its Climate & Innovation Hub located in Sri Lanka’s North Central Province, the program brings together local business owners, policymakers, and experts to drive climate-friendly economic growth. Through capacity-building workshops, mentorship, and access to seed funding, EthicalX helps entrepreneurs in sectors including traditional arts and crafts, sustainable food and agriculture, the textile industry, and service industries adapt their businesses to withstand climate shocks while promoting sustainable practices. For example, EthicalX conducts capacity-building workshops for local entrepreneurs focused on sustainable practices, technology transfer, and market visibility for ethical, climate-friendly products. Another initiative focuses on providing training to small enterprises on financial literacy and management, empowering communities to engage in informed financial decision-making.

"Our focus is on creating local solutions to global climate challenges," says Dulanga Witharanage, country director of EthicalX Climate and Innovation Hub. "EthicalX is about giving local entrepreneurs—especially women and youth—the tools they need to drive the climate agenda while strengthening their communities."

The program operates with a hands-on, community-driven approach. Entrepreneurs not only receive technical support but also actively participate in policy dialogues. EthicalX facilitated the active involvement of entrepreneurs and local stakeholders in policy dialogues with the Sri Lankan government, ensuring their perspectives were integrated into climate policies and aligned with National Adaptation Plans and Nationally Determined Contributions.

Building Inclusivity Through Entrepreneurship

EthicalX’s impact is already being felt on the ground. Over 900 participants across six key districts—Colombo, Anuradhapura, Galle, Kandy, Matale, and Trincomalee—have been involved in workshops, training sessions, and collaborative planning meetings, implementing solutions that are both locally relevant and climate-resilient. These events have involved a diverse range of stakeholders, including government officials, entrepreneurs, and micro, small, and medium enterprises, with significant participation from women and youth. EthicalX targets some of the most vulnerable segments of society—women and youth—offering them the skills, resources, and support to drive sustainable development and resilience.

With its eye on inclusivity, EthicalX places a special emphasis on women-led businesses and youth-driven enterprises, helping them overcome systemic barriers to growth and innovation.

Scaling the Impact of EthicalX

By the end of the intervention, EthicalX aims to directly benefit between 2,000 and 5,000 people, with entrepreneurs receiving training on everything from circular economy practices to market visibility for eco-friendly products. "This is about creating long-term resilience, not just short-term solutions," says Witharanage. "By integrating local knowledge and leadership, we’re ensuring that communities can thrive even in the face of climate threats."

The program’s success has inspired plans to replicate the model in Africa, with groundwork already being laid to expand the EthicalX Climate & Innovation Hub. As Sri Lanka’s entrepreneurs continue to innovate, EthicalX is proving that locally-led, sustainable business practices can be a powerful tool in the fight against climate change.