Hazardous Wastes Trade: Impacts of Importing Wastes Under Entrepôt Trade, A Case Study of Sri Lanka

Despite the prohibition of transboundary trade in hazardous waste trade among countries, it occurs between developed and developing countries, mainly through some trading systems such as entrepôt trade. Sri Lanka has experience in this trade, having introduced entrepôt trade facilities in 2013. The paper reviews the case of importing hazardous wastes from the United Kingdom to Sri Lanka in 2017. Thus, 241 waste containers were imported by two private companies for recycling and re-export purposes. However, only 100 containers were utilized for the said purpose, and the other 141 containers were unused because they contained rotted toxic clinical waste such as materials disposed of mortuaries, syringes, plastics, and other wastes. Considering the serious concern of the public, the Sri Lanka Court ordered the resendment of all garbage to the origin of imports. Considering the severe effects on the economy, the paper expected to assess the effect by focusing on three aspects, i.e., factors influenced by importing wastes to the country and its economic and environmental impacts on the economy. The analysis was based on secondary data that analyzed by descriptive statistical techniques such as mean and modes. The economic Impact was assessed by reviewing the benefit of entrepôt trade indicators, i.e., employment, service companies, total revenue, and contribution to GDP encountered as cost and benefit. Environmental Impact was assessed by considering possible effects on society if hazardous waste is imported and re-exported, in view of human hazards made in Sri Lanka from time to time in terms of human and health aspects. Economic analysis reveals that logistic services and Transshipment Services positively impacted employment creation and contribution to GDP. Nevertheless, the Impact of establishing service companies and total revenue was neutral. The environmental analysis discloses the possible threats to society if it allows the import of hazardous waste. It concludes that imports of hazardous wastes to the country are harmful and socially exclusive.