Sri Lankan construction industry significantly contributes to environmental degradation through excessive use of resources and the generation of waste, necessitating a shift towards sustainability. Drawing on the use of Circular Economy (CE) principles to enhance sustainable development in the industry, this research examines the CE application. Through an examination of barriers to the adoption of CE, such as regulatory gaps, prohibitive initial investment costs, technology deficiency, attitude towards change, and knowledge gaps, the study identifies essential barriers to progress. Drawing on 20 semi-structured interviews with industry representatives like architects, engineers, and sustainability consultants, the study applies content analysis to nominate 28 barriers and recommend 15 solutions to address them. The overarching solutions include policy alterations, economic incentives like grants and low-interest loans, enhanced re-cycling facilities, education, and public awareness campaigns. These measures are intended to bridge the gap between CE theoretical principles and physical implementation, ensuring resource efficiency, sustainability, and economic resilience. The findings offer actionable insights to stakeholders, positioning the Sri Lankan construction sector in line with global sustainability targets while taking into account local resource limitations and environmental challenges, to-wards a regenerative, circular construction practice.