By: Staff Writer
September 11, Colombo (LNW): Sri Lanka has officially launched its National Climate Finance Strategy (2025–2030), aiming to mobilise private capital into climate-resilient and low-carbon sectors, Cabinet Spokesperson and Health Minister Dr. Nalinda Jayatissa confirmed yesterday. The move comes as the country faces increasing climate-related risks, with the Global Climate Risk Index identifying Sri Lanka as highly vulnerable to catastrophic weather events, causing annual economic losses exceeding 2% of GDP.
Dr. Jayatissa highlighted that mitigating and adapting to these risks requires roughly $500 million annually for climate-resilient infrastructure—equivalent to 0.5% of GDP—a figure beyond the capacity of the national budget. “Significant private sector investments are essential in renewable energy, agriculture, fisheries, and resilient infrastructure. The strategy establishes a structured framework to attract such green financing beyond traditional budgetary allocations,” he said.
The strategy, developed by the Department of External Resources and the Department of National Planning with UNDP support, involved contributions from 35 government institutions, including the Ministries of Environment, Wildlife Conservation, and Forests. The Cabinet approved the President’s proposal, in his capacity as Finance Minister, to officially declare and implement the strategy.
Experts suggest that Sri Lanka’s ability to achieve the ambitious targets of the strategy will depend on several factors. The framework is designed to attract private investment through incentives, guarantees, and partnerships, but consistent policy execution and regulatory stability are critical to building investor confidence. Ensuring transparency in fund allocation, project monitoring, and adherence to environmental and social safeguards will also be essential to maintain credibility in global climate finance markets.
The strategy sets out a multi-sectoral approach, targeting renewable energy expansion, climate-resilient agriculture and fisheries, and enhanced infrastructure capable of withstanding extreme weather events. By diversifying financing sources beyond public expenditure, the government aims to mobilise capital for long-term sustainable development while mitigating climate-induced economic shocks.
However, challenges remain. Sri Lanka’s current fiscal constraints and competing development priorities may limit the scale and pace of implementation. Success will require close coordination between government agencies, private sector actors, and international development partners, along with robust monitoring mechanisms to track progress against targets.
“Mobilising private capital through a structured strategy is a necessary step, but turning plans into tangible outcomes will test the government’s policy coherence and operational capacity,” said an independent climate finance analyst.
The National Climate Finance Strategy represents a critical opportunity for Sri Lanka to strengthen climate resilience while fostering green economic growth. Its success will largely depend on effective execution, investor confidence, and sustained commitment across both public and private sectors to achieve the country’s climate and development goals.
