Sri Lanka Aims to Raise Over $11 Billion for Climate Projects by 2030

Sri Lanka has set an ambitious target to raise $11.26 billion by 2030 through the issuance of Sovereign Green and Blue Bonds. This initiative is detailed in the new National Climate Finance Strategy (NCFS) 2025-2030, and is a core part of the country’s plan to achieve net-zero carbon emissions by 2050.

The funds are earmarked for investments in key environmental initiatives, including:

• Renewable energy
• Biodiversity conservation
• Waste management
• Sustainable agriculture practices
• Strategy and Financial Tools

The NCFS, developed with support from the UK Government and the United Nations Development Programme (UNDP), outlines a robust framework for sustainable finance.

• Bonds: The Ministry of Finance has developed a Sovereign Green and Blue Bond Framework and is seeking an independent second-party opinion from an international rating agency to ensure compliance with global standards. Future issuances will align with the Green Bond Principles of the International Finance Corporation (IFC), and a Sustainability-Linked Bond Framework is also being explored to enhance investor trust.
• Other Instruments: The strategy also focuses on utilizing core financial instruments such as green loans, public-private partnerships for climate action, disaster risk insurance, and subsidies for good agricultural practices.
• Carbon Market: The plan prioritizes integrating natural capital accounting into national accounts and exploring a carbon market to monetize emission reductions.

The success of the NCFS is expected to position Sri Lanka as a regional leader in sustainable finance, improve its sovereign credit rating and attract vital international investment. Strong domestic demand for recent Green Bond issues indicates growing local awareness and support.

Source:

https://hirunews.lk/en/business/427669/sri-lanka-aims-to-raise-over-11-billion-for-climate-projects