The Sri Lanka Climate Finance Strategy for 2025–2030 has been approved by the Cabinet to mobilize private capital into renewable energy, agriculture, fisheries, and climate-resilient infrastructure, addressing the nation’s $500 million annual climate funding gap.
Sri Lanka Climate Finance Strategy aims to attract private investment in renewables and resilience.
Sri Lanka has adopted the National Climate Finance Strategy 2025–2030, a landmark initiative designed to channel private investment into climate-resilient and low-carbon sectors. The Cabinet of Ministers gave its approval to the strategy, recognizing the urgent need to strengthen funding mechanisms for climate action.
Cabinet Spokesperson and Minister of Health and Mass Media Dr. Nalinda Jayatissa explained that Sri Lanka faces high vulnerability to extreme weather, with the Global Climate Risk Index ranking the country among those most at risk. Annual losses from climate-related events already exceed 2% of GDP. To mitigate these risks, the government estimates it needs to invest about $500 million every year in climate-resilient infrastructure, equal to 0.5% of GDP. However, the national budget cannot sustain this level of expenditure, making external and private sector participation essential.
The Sri Lanka Climate Finance Strategy provides a structured framework to attract green investments into critical sectors such as renewable energy, sustainable agriculture, fisheries, and resilient infrastructure. By enabling private capital flows, the plan seeks to complement public funds and international development support, ensuring long-term sustainability in climate adaptation and mitigation efforts.
The strategy was prepared with technical assistance from the United Nations Development Programme (UNDP) and input from 35 government institutions, including the Ministry of Environment, Department of Wildlife Conservation, and Department of Forests. The proposal was submitted by the President in his role as Minister of Finance, Planning and Economic Development and received unanimous Cabinet approval.
Officials emphasized that the Sri Lanka Climate Finance Strategy is not only about financing but also about creating an enabling environment for investors. The approach aims to build confidence among global partners, expand opportunities for green capital, and ensure Sri Lanka’s readiness to meet international climate commitments while supporting domestic economic growth.