Climate ambition alone won’t pay bills, Sri Lanka warned, as development partners and business leaders cautioned that the country must urgently transform its climate commitments into investment-ready projects to secure much-needed climate finance and remain competitive in global markets.
Climate ambition alone won’t pay bills, Sri Lanka warned at climate summit
The warning was delivered at the Sri Lanka Climate Summit 2026, organized by the Ceylon Chamber of Commerce, where experts emphasized that while Sri Lanka has made significant progress in economic recovery and climate policy development, substantial challenges remain in converting those ambitions into tangible investments capable of attracting international funding.
Speaking during a panel discussion, United Nations Food and Agriculture Organisation (FAO) Representative for Sri Lanka and the Maldives, Vimlendra Sharan, said the country’s climate vulnerability and policy ambitions alone would not be enough to unlock large-scale financial support.
“Sri Lanka is climate-vulnerable, yet climate-ambitious. What is not given is the more important question: Is Sri Lanka climate investment-ready?” he said, describing the country’s preparedness for climate-related investment as a journey that has only just begun.
Sharan noted that Sri Lanka must develop structured, scalable, and financeable projects if it hopes to attract greater volumes of climate finance from international investors and development institutions. While policy frameworks such as Nationally Determined Contributions (NDC) 3.0 have strengthened the country’s climate agenda, he said important gaps persist in project preparation capacity, availability of reliable climate data, and the development of bankable investment opportunities.
The discussion highlighted a growing reality facing Sri Lankan businesses: climate change is no longer solely an environmental issue but increasingly a commercial and competitiveness concern. Export-oriented industries, particularly those dependent on agricultural supply chains, are becoming more exposed to climate risks as well as stricter sustainability requirements imposed by global markets.
Dilmah Tea Chairman and CEO Dilhan Fernando stressed that adaptation to climate change has become essential for the survival of several of Sri Lanka’s key export sectors.
For industries such as tea, cinnamon, and other agricultural exports, changing weather patterns and increasing climate uncertainty pose significant operational risks. Fernando warned that exporters are simultaneously facing tougher regulatory requirements in major overseas markets, particularly within the European Union.
He pointed to upcoming regulations including the European Union Deforestation Regulation (EUDR), Packaging Waste Regulation, and the EU Green Claims Directive, which are expected to tighten sustainability compliance requirements for companies seeking market access.
According to Fernando, the impact extends beyond individual exporters. Entire supply chains will increasingly come under scrutiny, requiring businesses to demonstrate transparency and environmental compliance throughout their operations.
“If we are using a packaging supplier who is unable to validate the source of their raw material, you don’t get in,” he said.
Climate-related risks are also beginning to affect agricultural productivity. Fernando warned that increasingly erratic weather conditions, including prolonged droughts and intense rainfall events, are threatening both crop quality and production volumes.
Sri Lanka’s tea industry, one of the country’s most important export earners, could face growing challenges in maintaining production targets if extreme weather patterns continue to intensify. He cautioned that declines in product quality often precede reductions in output, raising concerns about the long-term sustainability of export agriculture.
Supporting the call for stronger climate preparedness, Asian Development Bank (ADB) Country Director for Sri Lanka Shannon Cowlin highlighted the importance of maintaining macroeconomic stability alongside investments in climate resilience.
She noted that Sri Lanka’s economic recovery has improved its ability to respond to climate-related disasters compared to previous years. The country’s response to Cyclone Ditwah, she said, demonstrated how stronger economic fundamentals can improve resilience during periods of crisis.
However, Cowlin emphasized that climate resilience must be embedded across key sectors including energy, water, transport, and public infrastructure. She argued that financially sustainable utilities and institutions are essential to maintaining resilient systems capable of withstanding future climate shocks.
“A bankrupt utility is not going to be maintaining a resilient system,” she said.
Cowlin also revealed that the ADB is preparing an emergency assistance programme linked to Cyclone Ditwah recovery efforts. The initiative will incorporate “Build Back Better” principles, focusing on infrastructure improvements such as slope stabilization, enhanced drainage systems, and stronger engineering standards designed to reduce future climate-related damage.
Speakers agreed that Sri Lanka possesses significant opportunities to attract climate finance and strengthen its position as a sustainable export destination. However, realizing those opportunities will require more than policy commitments alone.
Development partners stressed that success will depend on the country’s ability to strengthen institutions, improve project preparation capabilities, generate credible climate-related data, and build a robust pipeline of investment-ready projects. Without these foundations, Sri Lanka risks falling behind competing markets that are moving more aggressively to attract climate-related investment and strengthen long-term economic resilience.
As climate risks continue to intensify globally, the message from the summit was clear: translating ambition into action will be critical if Sri Lanka is to secure funding, protect exports, and build a more resilient economy for the future.