This scoping study explores the potential of water hyacinth (WH) as a circular solution in Sri Lanka, focusing on its business and market demand, economic viability, environmental impact, social implications and material innovation models required. The study aims to assess current business and its practices, identify opportunities for sustainable utilization, and provide strategic recommendations for scaling WH-based initiatives into a business accelerator programme.

Water hyacinth, while invasive, presents significant potential for transformation into value-added products such as handicrafts, compost, bioenergy, biochar, substitution to single use plastics, building materials and fiber applications of multiple designs. WH can also be used to create opportunities in all ESG thrust areas based on global and local experience in which applications could be in line with handicrafts; furniture; yarn and clothing; paper and board products; livestock feed; soil amendments and soil fertility enhancement; bio char and biomaterials and bioplastics. This study has taken into consideration, an analysis of the circularity of water hyacinth through the lens of material innovation, environmental safeguards and a business strategy analysis, while also examining the existing market demand, technological capabilities, and policy frameworks, alongside stakeholder perspectives from government, community groups, and private sector actors. This summary highlights the key findings and recommendations under each thematic chapter of: Material Innovation, Environmental Context and Ecosystem Impacts and Business and market analysis.