Climate economics must become a priority

A few decades ago, climate change could be spoken of as a distant environmental concern, something to be observed, debated, and perhaps noted in policy papers. That time has passed. Climate change is real, it is accelerating, and its consequences will be felt across every corner of the world. For small island nations like Sri Lanka, those consequences will arrive earlier, strike harder, and leave deeper scars. The recent Ditwah cyclone is only the latest reminder that we stand on the front lines.

We as a tropical island long accustomed to monsoons and seasonal storms, should theoretically be resilient. For generations, we have weathered nature’s rhythms as part of our lived experience. But the ferocity of the recent cyclone, its destructive winds, heavy rains, and unprecedented flooding, exposed a frightening truth that our natural resilience is no longer enough. The scale of the damage reveals a country deeply vulnerable to climate shocks. This is not just a disaster-management issue. It is an existential economic issue.

In this new era, we cannot afford to treat the environment as an abstract or secondary concern. Climate must be a central pillar of our national economic planning. The country needs a comprehensive climate economics framework — one that integrates environmental realities into every major policy decision, from agriculture to energy to land use. We must understand that climate change is not only altering weather patterns. It is redefining the very conditions under which our economy functions.

The cyclone has shown how fragile our food security truly is. A single season of intense drought or torrential rain can devastate crops and disrupt supply chains. Without robust climate-sensitive agricultural planning,  from crop diversification to irrigation reform to investment in climate-resilient farming,  Sri Lanka risks sliding into chronic food insecurity.

The energy sector faces similar vulnerabilities. A significant share of our electricity generation depends on large-scale hydropower. In a future marked by erratic rainfall and prolonged dry spells, hydropower cannot remain the backbone it once was. Diversifying our energy mix is not merely a technological preference but a strategic necessity. Solar, wind, biomass, and other renewable sources must be expanded, even at the cost of building redundant capacity. Energy security requires buffers. If one sector fails, others must be strong enough to stabilise the grid.

Even our oceans, once abundant and sustaining,  are bearing the cost of climate change. Warmer waters, pollution, and coastal erosion are reducing fish stocks, threatening livelihoods in coastal communities and shrinking a key part of our food supply. A climate-aware fisheries policy that integrates conservation, monitoring, and sustainable harvesting is overdue.

Perhaps the most critical, yet overlooked, piece of Sri Lanka’s climate economy lies in the central hills. These highlands are the beating heart of our country’s water cycle and ecological health. But decades of plantation activity, deforestation, and human encroachment have worn them down. The consequences are worsening landslides, soil erosion, erratic river flows, and degraded watersheds.

It is time for a serious national conversation about restoration. Reforestation and the revival of wilderness areas especially above 5,000 feet are no longer idealistic ambitions. They are economic imperatives. The Government must actively reduce human impact in these fragile zones, strengthen conservation laws, and invest in large-scale ecological rehabilitation.

Climate change is not an isolated problem to be solved by environmentalists. It is a structural challenge that will determine the trajectory of our economy, our development, and our national wellbeing.