Sri Lanka remains one of the most climate-vulnerable nations in the world, consistently ranking among the top ten countries on the Global Climate Risk Index between 2018 and 2020, the Finance Ministry cautioned on Friday (24).
In its newly released publication, National Climate Finance Strategy of Sri Lanka 2025–2030, the Ministry stressed that climate-induced extreme weather continues to pose severe threats to the country’s economy and communities.
To overcome fiscal limitations and meet climate commitments, the report recommends expanding public-private partnerships (PPPs) as a key mechanism to mobilise investment and expertise.
“PPPs offer Sri Lanka a vital pathway to achieve its climate goals while managing financial limitations,” the Ministry stated, noting that sectors such as renewable energy, water management and urban development require large-scale infrastructure upgrades.
The document emphasises the significant potential of renewable energy — including solar, wind and hydropower — to reduce dependence on fossil fuels and lower carbon emissions. By enabling the private sector to take on financing, construction and operations, while the Government facilitates land and regulatory support, Sri Lanka can accelerate projects such as wind farms and battery storage systems, it added.
The Finance Ministry said strengthening climate resilience and transitioning to a low-carbon economy will require innovation, strong partnerships and increased investment to protect the nation against future climate risks.
