Sri Lanka faces growing climate threats amid low stakeholder literacy and financial readiness

SRI Lanka's climate crisis has intensified rapidly, far surpassing the current levels of stakeholder awareness and capacity to finance essential mitigation and adaptation efforts. As the country faces escalating risks from extreme weather, rising temperatures, and greenhouse emission levels a critical question arises: Are we ready to bridge this widening gap and take decisive action before it's too late? The climate crisis is no longer a distant threat. Its impacts are here, and they are happening now affecting people around the world on a daily basis. The need to raise ambition for climate action is more urgent than ever. The projected economic losses that can be avoided by 2100 by realising a 1.5°C warming scenario are estimated to be five times greater than the climate finance needed by 2050 to achieve it.

- By Dr. Gishan Illangakoon, PhD

The Central Bank of Sri Lanka (CBSL) launched its Sustainable Finance Roadmap 2.0 on 5 April. Governor Dr. Nandalal Weerasinghe emphasised that “extreme weather events are no longer anomalies they are the new normal. Sustainable finance is not optional; it is a global imperative and a national necessity.” Sri Lanka estimates that it must mobilise $ 10.85 billion by 2030. Mobilising these resources remains a formidable challenge, given the country's constrained fiscal space, external debt obligations, and ongoing commitments under the IMF-supported program. We still have five more years to meet our targets. Bridging this gap will necessitate a strategic shift toward more innovative and diversified financing solutions.

Although Sri Lanka has developed a range of acts, plans, and strategies, the critical question is whether we possess a clear, actionable plan and a cohesive strategy to effectively mobilise the required resources and deliver on our climate commitments. In the absence of a well-coordinated, results-driven approach, one that integrates fiscal planning, leverages private sector participation, and strengthens international cooperation, there is a significant risk that the country will fall short of its climate and development objectives at a time when decisive and unified action is imperative. A notable example, as highlighted in recent newspapers, is the continued struggle of authorities to resolve the ownership and institutional responsibility of the Vehicular Emission Trust Fund (VETRF). If we are still entangled in such basic governance issues, how can we realistically expect to move beyond fragmented, inconsistent approaches and make real progress on our climate agenda?

The danger and gravity of the climate risk impacts are shown in the following information.

■Climate refugees: By 2050, an estimated 200 million people may be displaced due to climate-related events. (UNHCR)