The Central Bank of Sri Lanka (CBSL) has unveiled an updated sustainability roadmap, with its governor stressing the urgent need to scale up green investments to achieve the country's climate commitments.
Governor Nandalal Weerasinghe stated that Sri Lanka requires an estimated $10.85bn by 2030 to fulfil its nationally determined contributions (NDCs) under the Paris Agreement.
“Extreme weather events are no longer rare occurrences; they have become the norm. Sustainable finance is not a choice; it is a global necessity, and it is essential for Sri Lanka,” he said during his keynote speech at the launch event.
Sri Lanka is highly vulnerable to climate-induced extreme weather, with related losses currently amounting to around 0.4% of GDP, or roughly $300m. Without intervention, CBSL warns these losses could triple to 1.2% of GDP by 2050.
The revised sustainability roadmap builds on the 2019 framework and outlines goals for the next five years. Its scope has been broadened to incorporate social dimensions and encompass a wider range of economic sectors.
The central bank also emphasised the importance of enhancing the policy and regulatory framework for insurance, particularly climate insurance, to enable the development of innovative solutions such as index-based policies.
The roadmap identifies four areas to prioritise:
- climate change mitigation including renewable energy generation and access to clean energy
- climate change adaptation including resilience and climate-proofing
- forests and natural assets
- inclusiveness such as gender inequality and vulnerable groups of the population.