Sri Lanka adopts National Climate Finance Strategy 2025–2030 to attract investment
Daily FT: Cabinet Spokesperson and Health and Mass Media Minister Dr. Nalinda Jayatissa has said the Cabinet of Ministers approved the declaration and implementation of the Sri Lanka National Climate Finance Strategy (2025–2030) to mobilise private capital into climate-resilient and low-carbon sectors.
“Sri Lanka has been identified by the Global Climate Risk Index as a country at high risk of climate-related catastrophic weather events, with annual losses estimated at more than 2% of GDP. To mitigate and adapt to these risks, the Government should invest around $ 500 million each year in climate-resilient infrastructure, equal to 0.5% of GDP, which the National Budget cannot sustain,” Dr. Jayatissa said.
He said significant investments are therefore required in renewable energy, agriculture, fisheries, and climate-resilient infrastructure, and that the new strategy provides a structured system to attract green investments beyond traditional budget financing.
The strategy was prepared by the Department of External Resources and the Department of National Planning, with UNDP assistance and contributions from 35 Government institutions, including the Ministry of Environment, the Department of Wildlife Conservation, and the Department of Forests. The Cabinet approved the proposal submitted by the President, in his capacity as Minister of Finance, Planning and Economic Development, to declare and promote the strategy.
OSL take:
Along with Sri Lanka’s ongoing economic activities and overall economic expansion, the Sri Lankan government is focused on further expanding the country’s economy encompassing the fast-evolving global climate economies. It is in such a backdrop that the Sri Lankan government is looking at presenting a National Climate Finance Strategy for the next five years. Given that Sri Lanka is working towards becoming a hub in the South Asian region supported by the country’s geographical positioning in the Indian Ocean, the strong trade ties enjoyed by the country with many foreign countries and the improving ease of doing business environment in the country have all added to boost Sri Lanka’s position as an emerging business destination in the region. The country’s economic expansion and the many emerging business/investment opportunities, with new opportunities through climate financing, foreign businesses/investors could confidently explore these new avenues to engage with Sri Lanka, especially in presenting the latest global developments and technologies.
| Article Code : | VBS/AT/20250911/Z_1 |