By: Staff Writer
November 03, Colombo (LNW): In a decisive shift from fragmented donor-funded projects to a unified and strategic model, Sri Lanka has unveiled a major overhaul of its Official Development Assistance (ODA) framework under the new National Climate Finance Strategy 2025–2030, Finance Ministry sources revealed.
The strategy serves as the backbone for integrating donor commitments into the country’s national priorities focusing on building climate resilience, modernizing infrastructure, and mobilizing private investment.
The Ministry of Finance is now set to streamline the administration and disbursement of ODA, aligning it with international best practices to ensure funds are effectively channelled into key development areas such as renewable energy, sustainable water management, and coastal protection.
According to ministry data and donor announcements, Sri Lanka’s total ODA inflows for 2025 are projected to reach approximately US$4.7 billion, a significant increase compared to recent years. The surge stems from renewed engagement by major multilateral and bilateral partners.
The Asian Development Bank (ADB) is expected to allocate around US$900 million, while the World Bank Group’s multi-year package exceeds US$1 billion, with substantial commitments scheduled for 2025.
Further strengthening the funding envelope, India’s expanded grant assistance, estimated at US$780 million, and contributions from other bilateral partners and specialized climate initiatives have positioned Sri Lanka for one of its strongest ODA years in recent memory.
Officials emphasized that each of these financing streams whether loans, grants, or blended instruments will now be strategically aligned with the government’s long-term reform agenda. The Treasury and the Department of External Resources will prioritize bankable projects consistent with the Climate Finance Strategy, ensuring that development efforts produce tangible and sustainable outcomes.
A centralised monitoring mechanism will be introduced to track ODA utilization, while regular public impact reports are expected to enhance transparency and accountability. With donors increasingly focused on measurable results, Sri Lanka aims to demonstrate credible fiscal management and improved governance in external financing.
Oversight of concessional loans and blended instruments will fall under the Public Investment Committee, supported by capacity-building initiatives to strengthen institutional performance. Analysts note that the success of this reform will depend on how effectively the government can translate increased financial inflows into visible climate resilience and sustainable growth outcomes.
If implemented as planned with robust coordination, transparency, and accountability the 2025 ODA framework could mark a turning point, transforming donor support from short-term relief into a sustainable driver of Sri Lanka’s climate-resilient and inclusive economic growth.
