Sri Lanka experiences extreme weather such as increased rainfall, rising temperatures, heat and water stress, drought, floods, landslides, tropical cyclones, storm surges, salinity intrusion, coastal erosion and disease outbreak. Changes in temperature and rainfall patterns are already impacting almost all sectors -agriculture, livestock, fisheries, water resources, biodiversity, ecosystems, urban planning, human settlements, health, tourism and recreation.
The Asian Development Bank (ADB) has long played a crucial role in Sri Lanka’s development process, assisting the country across various sectors. Recently, the ADB pledged to the Government to translate climate priorities into investment programs under technical assistance (TA 9700: Sustaining Climate Resilience and Low-Carbon Development in South Asia), given that Sri Lanka is among the countries that is most vulnerable to climate change.
Green economy
With Sri Lanka aiming to become the region’s first green economy, the Government prioritises green growth and effective regulatory frameworks and clear institutional roles for development partners are essential for implementing these strategies, states the ADB.
Launch of ADB Policy Brief
The launch of the ADB Policy Brief on ‘Maintaining Climate risk into Development Challenges and Recommendations’ was held in Colombo on October 23 and 24. This event featured a two-day workshop that brought together Government officials and key representatives from the non-state sector, including NGOs, CSOs, private sector organisations, academia and development partners.
ADB Country Director, Takafumi Kadono handed over The ADB policy brief including Challenges and Recommendations to Shiranthi Rathnayaka, Director General (Acting) Department of National Planning, Ministry of Finance at the event.
What is TA 9700
Technical Assistance (TA) 9700 focuses on creating knowledge and capacity development support, updating climate risk profiles in climate-stressed areas and enhancing the national planning department’s ability to screen climate risk-integrated project proposals while identifying ADB’s operational priorities in Sri Lanka, This assistance also focuses on creating knowledge and capacity development support, updating climate risk profiles in climate-stressed areas, and enhancing the national planning department’s ability to screen climate risk-integrated project proposals while identifying ADB’s operational priorities in Sri Lanka.
The key objectives of the national inception workshop were to introduce stakeholders to the scope and approach of the TA9700. To sensitise state and non-state sector stakeholders to the TA9700 deliverables. Also engaging participants in identifying challenges and opportunities for climate responsive investment planning in Sri Lanka and determining potential national level climate responsive and sector integrated programmatic solutions; communicating the next steps and way forward related to the TA9700 process and the national, and sub-national level consultation process.
Being hopeful
Kadono said TA 9700, the ADB will support or work hand-in-hand with the Government and all stakeholders in Sri Lanka to prepare an integrated climate-responsive investment plan. “This integrated climate responsive investment plan will identify a pipeline of valuable investment opportunities that can be transformed into full-scale, ready-to-invest projects focused on climate change adaptation and resilience building.”
Kadono said the workshop is just the beginning of an extensive consultation process to seek the views from a wide range of stakeholders on how the ADB can develop this integrated climate-responsive investment plan for Sri Lanka. “With shared commitment and development partners’ cooperation, we can make the transition to net zero and build climate resilience so that Sri Lanka emerges stronger than ever,” he expressed his hopeful vision for Sri Lanka.
“This is a watershed moment. As the Climate Bank of Asia and the Pacific, the ADB is proud and eager to facilitate this initiative. However, it requires the valuable input of participants, drawing from their extensive knowledge, experience and expertise, to help shape a comprehensive, climate-responsive investment plan for Sri Lanka. The expectation is for an active discussion that will lay the groundwork for a tangible, climate-focused investment strategy, ensuring Sri Lanka’s sustainable, inclusive, and resilient development for future generations,” he added.
“Climate change, of course, is now regarded or accepted worldwide as an overarching development challenge which seriously affects economic growth, food security, public health, cultural heritage, social stability, migration, and even the national security of countries. Even though Sri Lanka is a negligible contributor to global warming in terms of the carbon footprint, as a nation, we are vulnerable to the impact of climate change. These include increase in frequency and intensity of disasters such as drought, floods, and landslides, variability and unpredictability of rainfall patterns, increasing temperature and heat stress, sea level rise, and salinity intrusion, among others,” he added.
Kadono emphasised that coping with the uncertain impact of climate change is no longer a choice—it is an imperative. He added that Sri Lanka needs to address climate change adaptation to ensure that its economic development can continue without disruption or setbacks, so that investments in poverty reduction, food and water security, and public health are not undone. “Given the severity and far-reaching impacts of climate change, which affect nearly every aspect of our lives and nation, our response must be integrated and sustainable,” he further added.
According to Kadono, commitment from the Government and cooperation among partners are essential to make this initiative successful.
Sri Lanka has the potential to set an example and ADB will provide full support through its operations, technical assistance, and knowledge partnerships. The five-year country partnership strategy, approved in March 2024 focuses on helping Sri Lanka recover from the economic crisis by restoring macroeconomic stability, promoting private sector-led green growth, and improving access to climate-smart public services. Despite the challenges posed by limited fiscal space due to both internal and external shocks, a shared vision, clear strategy and strong investment plan are crucial for implementing climate-responsive investments, he said.
Transforming challenges
Shiranthi Rathnayaka, called for collaboration across development sectors, administrative boundaries, and generations to build a prosperous and sustainable country. By embracing climate-responsive investment planning, she said, we can transform the challenges of climate change into opportunities for growth, innovation, and resilience. The journey towards a sustainable future may be challenging, but it’s a journey worth undertaking. “Let’s seize this moment to invest, wisely plan for the future, and create a world where both people and the planet can thrive,” Rathnayaka said.
ADB Country Director, Takafumi Kadono handing over the The ADB Policy Brief – Maintaining Climate risk into Development Challenges and Recommendations to Director General (acting), Department of National Planning, Ministry of Finance, Shiranthi Rathnayaka.
Climate change is no longer distant. It is a current reality that affects communities, economies, and ecosystems in Sri Lanka and also worldwide. Climate science warns us that time is running out to meet our climate targets such as those outlined in our Paris Agreement also which seeks to limit global warming to 1.5 degrees Celsius.
To achieve these goals we must not only reduce emissions but also invest in solutions that will help us adapt to changing climate. This is where climate-responsive investment planning becomes vital. So it requires integrating climate consideration into our investment decision, ensuring that our financial flows align with the objective of a low-carbon and climate-resilient future. Investment in renewable energy, sustainable agriculture practices, and integrated port resources, she emphasised.
National Physical Planning
The National Physical Planning Department was set up under the Town and Country Planning Amendment Act No. 49 of 2000, which mandated the formulation of a National Physical Planning Policy and preparation of a National Physical Plan.
Sharing his views on the National Inception Workshop and the launch of the ADB Policy Brief National Physical Planning Department Director (Engineering), Eng. C.Kularathne said, “The implementation of a plan is more difficult and challenging than the preparation of a plan. We have experienced this and struggled with implementing the National Physical Planning for years. Therefore, we believe that this is a fantastic opportunity offered by the ADB.”
“So, we have formulated four physical planning policies that are considered appropriate for the context of Sri Lanka. The first is the conservation of critical land units, the second is the promotion of the environment for human use, the third is the optimisation of the utility of available resources and the last is the exploration of potential land enhancement of the unit. Based on these four National Physical Planning policies we have derived four guiding principles,” he added.
“The first principle is conservation space, which focuses on major rivers, ponds, reservoirs and lagoons. It also considers the distribution of coastal and riverine ecosystems, archaeological sites declared by the Department of Archaeology, wildlife and biodiversity, proposed elephant conservation areas and unique landscapes identified for preservation and other land uses. Then, we performed GIS synthesis, and the vulnerability map was obtained,” he said explaining the process.
Secretary to the Ministry of Environment, Wildlife, Forest Resources, Water Supply, Plantation, and Community Infrastructure, Co-chairman and the Vice President of the Global Green Growth Initiative Assembly and Council for the 2024-2026 period, Prabhath Chandrakeerthi emphasised that climate change is a multifaceted crisis affecting not only the environment but also public health, the economy and social justice.
Targets
Chandrakeerthi highlighted the urgent need for collective action to combat this issue, as Sri Lanka aims at net-zero emissions by 2050 and a 70 percent renewable energy target by 2030, necessitating private sector involvement and international cooperation.” The effects of climate change, including heat distress and air pollution, have already led to increased health issues and economic challenges, particularly in agriculture, where extreme weather has significantly reduced coconut harvests.”
Chandrakeerthi also pointed out the disparities in carbon emission between developed and developing countries, stressing the importance of social justice for vulnerable nations.
“Across all sectors of society, together we can turn this crisis into an opportunity for a healthier, more perceptual and prosperous world. But it starts with recognising that climate change is not just an environmental issue. It is our own issue, one that requires all of us to step up and make a difference,” he said.
He expressed confidence in the ADB’s initiative to create a Climate Responsive Investment Plan, urging collaboration across sectors to transform this crisis into an opportunity for a healthier and more prosperous future.
Sectoral planning
Principal Climate Change Specialist, the Climate Change and Sustainable Development Department (CCSD) ADB, Manila) Rabindra Osti drew the participants’ attention for the need for holistic strategies that link climate change and development while overcoming the siloed nature of sectoral planning to achieve effective climate resilience in South Asia.
Osti said Sri Lanka is relatively advanced in its efforts to integrate climate change into various sectors. However, when examining the South Asian region as a whole, it is clear that different countries are at varying stages of incorporating climate change into their development processes.
“How do we bring this investment program into the development process, planning process? As of now, we are segregating climate and development but this is not the case in reality.”
Citing an example from Bangladesh, he highlighted the challenges faced by farmers who had shifted from traditional rice farming to commercial tomato farming in response to climate change. Although the farmers were eager to adopt this new approach, they came across many obstacles. For example, they produced an overwhelming quantity of tomatoes but struggled to find a market for their surplus. Without adequate infrastructure, such as roads and cold storage facilities, many tomatoes ended up being wasted.
Osti said that these gaps show the complexity of integrated solutions. Addressing agricultural issues thus requires collaboration across multiple sectors, including transport, storage and electricity.
Broader stakeholder engagement needed
Director, Climate Change Secretariat, Ministry of Environment Leel Randeni, also highlighted the importance of integrating climate action into national development strategies.
He discussed in detail the importance of broader stakeholder engagement, particularly involving the private sector, to enhance climate finance and action. Aligning national strategies with international commitments, such as the Paris Agreement is crucial to reduce greenhouse emissions. Setting clear, conditional and unconditional targets for emission reduction ensures that Government and private entities contribute to climate goals, he said.
Randeni also emphasised the need for sustainable practices, such as organic farming and precision agriculture, as well as the development of climate-resilient crops and livestock.
He reaffirmed the nation’s ambitious goal to achieve net-zero emissions by 2050, and added, “We are more ambitious than our neighbours, India and China who have pledged to do the same by 2060 and 2070. We are also committed to fulfilling 70 percent of energy requirements from renewable sources by 2030. ”
Climate-risk plan
Climate Change Analyst (ADB- Consultant) Rohan Cooray said, “If you have a good climate-risk-incorporated plan, it will enhance your investment opportunities and investors will come in. No one will come to a land with risks. He emphasised the importance of incorporating climate change into development.”
Sri Lanka was consistently ranked within the top five countries for climate risk in the Climate Risk Index for 2017, 2018, and 2019, highlighting its vulnerability to climate change. Cooray said that, in such a backdrop, incorporating climate risk into development plans will ultimately enhance efficiency.
“Investors always consider costs, and they will see Sri Lanka as more vulnerable to risk. As a result, the insurance premiums for their companies or investments will be higher. Do you think investors will be eager to come under these circumstances?”
“There are other factors we often discuss, like governance issues. But it’s not just about governance—climate risk is a major concern. Because of this high risk, investors are hesitant. You need to understand that. Everyone wants to protect their brand and brand value, so it’s something that must be considered. If you incorporate climate risk into your plans, it will ultimately enhance efficiency.” he said.
Integrated solutions
Country Director Kadono reflecting on the panel discussion said a gap exists between national and provincial levels. the ADB, can certainly be the interlocutor for that vertical and horizontal integration, connecting the stakeholders together.
“This is what we are trying to do through integrated climate-resilient investment planning, which is our strength. Since the ADB works with Governments, we have also developed silos within sectors such as energy and transport, but we are going through reforms to provide integrated solutions. What we are doing here through TA 9700 is a part of that effort,” he said.
