New national strategy to plug Rs. 50 b annual climate-related losses, drive net zero transition

• Finance Ministry develops National Climate Finance Strategy 2025–2030 with UNDP, UK Govt. support
• Clearly articulated climate goals open doors for investments, says UK envoy
• UNDP says strategy will help SL attract smart investments, foster innovation, and build resilient economy that benefits all

Treasury Secretary  Dr. Harshana Suriyapperuma

UNDP Sri Lanka Resident Representative Azusa Kubota

British High Commissioner  to Sri Lanka Andrew Patrick

The Government yesterday unveiled the National Climate Finance Strategy 2025–2030, outlining a roadmap to strengthen resilience and steer Sri Lanka’s transition toward a net zero economy. As climate-related losses exceed Rs. 50 billion each year, the strategy seeks to mobilise financing to manage climate risks and fund a just transition—an increasingly urgent priority for Sri Lanka’s development agenda.

The strategy provides a comprehensive roadmap to leverage and channel climate investments effectively, marking a key step in aligning national development with global climate goals.

It identifies 12 key financial instruments, including disaster risk insurance, green bonds, public-private partnerships for climate action, natural capital accounting, entrance fees, a green revolving fund, carbon markets, and environmental, social and governance (ESG) swaps, to leverage resources and drive climate action across sectors.

The initiative is 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 underscores Sri Lanka’s commitment to accelerating climate resilience and sustainable development through strategic financial planning.

Speaking at the launch of the strategy, Treasury Secretary Dr. Harshana Suriyapperuma said: “The National Climate Finance Strategy is a critical enabler for Sri Lanka’s climate ambitions. It provides the financial architecture needed to operationalise climate policies and plans, ensuring that we can build resilience, reduce emissions and protect vulnerable communities.”

UNDP Sri Lanka Resident Representative Azusa Kubota said: “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.”

British High Commissioner to Sri Lanka Andrew Patrick said: “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 milestone strengthens Sri Lanka’s capacity to access international finance and align national planning with climate priorities. 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, a joint statement said.

The launch marks a significant move by the Government of Sri Lanka, UNDP, and the UK Government to unlock pathways that mobilise funds for climate resilience and sustainable development.

Pix by Lasantha Kumara