The hard plastic waste management in Sri Lanka experiences environmental, economic, and social challenges due to poorly controlled waste generation which reaches 1.5 million tons each year. The focus of recycling programs operates in cities because rural areas do not have formal waste collection systems in place. Ineffective recycling from unrecognized informal waste collectors occurs because they receive no training and no access to technology or recognition despite collecting 60% of waste. This review examines hard plastic recycling practices in Sri Lanka by analyzing recent developments through system-based methods that discover gaps before proposing solutions supported by peer-reviewed studies and official government documentation as well as international industry information. The adoption of Extended Producer Responsibility frameworks combined with essential recommendations should focus on uniting informal waste management with formal operations while enabling recycling advancements coupled with regional collection facilities. Sri Lanka needs both the enforcement of waste management rules and educational initiatives to enhance community engagement and decrease pollution from improper waste elimination. This review uses international methods from Japan and the European Union to define a circular economy transition route that Sri Lanka can use to achieve both environmental goals and worldwide sustainability objectives and establish foundations for future research on scalable innovative technologies.