Sri Lanka launches National Climate Finance Strategy to drive resilience and net zero transition
As the global climate crisis intensifies, countries like Sri Lanka are grappling with the dual challenge of managing climate risks while financing a just transition. With climate-related damages exceeding LKR 50 billion annually,[1] financing climate action is central to Sri Lanka’s development agenda.
Led by the Ministry of Finance, in collaboration with the United Nations Development Programme (UNDP) through the Climate Finance Network project – funded by the Government of the United Kingdom, the ‘National Climate Finance Strategy of Sri Lanka 2025 – 2030’ provides a comprehensive roadmap to leverage and channel climate investments effectively, supporting Sri Lanka’s transition to a carbon net zero pathway. Launched on the International Day of Climate Action, the Strategy underscores Sri Lanka’s commitment to accelerating climate resilience and sustainable development through strategic financial planning.
Speaking at the launch of the Strategy, Dr. Harshana Suriyapperuma, Secretary to the Treasury, Ministry of Finance, Planning and Economic Development stated “the National Climate Finance Strategy is a critical enabler for Sri Lanka’s climate ambitions. It provides the financial architecture needed to operationalize climate policies and plans, ensuring that we can build resilience, reduce emissions and protect vulnerable communities.”
Commenting on UNDP’s technical leadership role, Ms. Azusa Kubota, Resident Representative, UNDP Sri Lanka added “Financing climate action is not just about managing risks – it’s about unlocking opportunities. This Strategy will help Sri Lanka attract smart investments, foster innovation, and build a climate-resilient economy that benefits all. UNDP remains committed to supporting the operationalisation of the Strategy by working on one of the proposed solutions – Green Revolving Fund – while ensuring that its priorities translate into tangible action across sectors.”
H.E. Andrew Patrick, High Commissioner, British High Commission to Sri Lanka 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.”
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.