Sri Lanka launches National Climate Finance Strategy to drive resilience and net zero transition
October 24, 2025
The accelerating intensity of the global climate crisis means that countries such as Sri Lanka are now left grappling with the twin challenges of managing climate risks while also financing a just transition. Financing climate action is central to Sri Lanka’s overall development agenda, more so in the face of climate-related damages exceeding LKR 50 billion year-on-year.
His Excellency Andrew Patrick, High Commissioner, British High Commission to Sri Lanka also shared “Sri Lanka’s Climate Finance Strategy creates a strong foundation for international collaboration. When countries clearly articulate their climate goals it opens doors not only to climate finance but also to responsible investment. The UK is proud to support Sri Lanka in its journey toward a resilient, low-carbon future.” The United Kingdom International Development through its Foreign, Commonwealth and Development Office (FCDO) leads the UK’s diplomatic, development, and consular work around the world, while funding for the Climate Finance Network is delivered through Climate Action for a Resilient Asia (CARA), the UK’s flagship regional programme to build climate resilience in South Asia, Southeast Asia, and the Pacific islands.
This milestone strengthens Sri Lanka’s capacity to access international finance and align national planning with climate priorities. The Strategy identifies twelve key financial instruments—including disaster risk insurance, green bonds, public-private partnerships for climate action, natural capital accounting, entrance fees, green revolving fund, carbon markets and environmental, social and governance (ESG) swaps—to leverage resources and drive climate action across sectors.
With its first review scheduled for 2027, the Strategy marks a decisive step toward aligning Sri Lanka’s development agenda with global climate goals. As the global community prepares for COP30, Sri Lanka’s National Climate Finance Strategy presents an opportunity for partners and stakeholders to support the country’s climate commitments to mobilise resources, strengthen implementation, and advance progress toward the Paris Agreement and the Sustainable Development Goals.
