Sri Lanka is highly vulnerable to climate risks, with heat, sea level rise, floods, landslides, and droughts posing significant threats to its ecosystems, economy, and communities. Local drivers such as pollution and land management exacerbate these risks, impacting agriculture and food production, cities and infrastructure, water availability, local biodiversity, and human health and well-being. This document consolidates key datapoints on climate risks and its socio-economic and environmental impacts, offering a useful source of reference for diverse stakeholders.

Beach cleanups, tree planting programmes, and commitments to recycling. These are some of the common ways in which Sri Lankan financial institutions typically market World Environment Day, falling each year on the 5th of June. Yet, there are major outstanding questions as to whether the country's financial institutions are effectively orienting themselves to meet the environmental challenges emerging in the country, and ensure that capital flows in the direction needed to foster a nature-positive economic recovery for Sri Lanka. New research by CSF shows that Sri Lankan financial institutions have some way to go in demonstrating environmental integration in their business.

CSF announces the launch of a set of knowledge materials, findings reports, and easy guides for interested stakeholders, freely available for download, developed under a project with Blue Resources Trust on marine conservation finance.

Sri Lanka is yet to give dedicated national priority to this agenda, unlike several other countries that have placed it at the heart of public policies on TVET and employment. The country must build on the recognition given to green jobs in its Climate Prosperity Plan, and articulate a clear and future-oriented ‘Green Jobs Strategy’.

Climate finance is growing globally, but women risk getting left behind. From the instruments we use, to the climate actions we fund, women are impacted. As Sri Lanka attempts to accelerate climate finance, gender must be a leading consideration.

Short-term and unsustainable plans for a tourism recovery, with narrow views on destination identity, can threaten the natural assets that Sri Lanka's tourism is branded on. On World Tourism Day 2024, we argue that its time for Sri Lanka to re-define tourism destination identities through an inclusive and imaginative approach. With examples from Kalpitiya and Yala, based on ongoing research, this article suggests the need to 'co-discover' destination identities with local stakeholders.

CSF recently hosted a panel discussion with three national and international experts on the role of nature-linked sovereign debt instruments in Sri Lanka’s economic recovery, amidst debt distress and acute environmental pressures. This Analytical Note summarises the 10 key messages.

Sri Lanka needs to become much more open to, and informed about, the new sources and mechanisms that are available for biodiversity financing. With the right domestic mechanisms, a credible policy commitment, open-mindedness among government and non-government stakeholders, and a nuanced view of the financing options, Sri Lanka can rise up to meet the challenge.

Sri Lanka's next Parliament has many issues to contend with, but underpinning many of these is the looming threats to our nature and biodiversity. Elected members of Parliament at the forthcoming General Election need to understand what these issues are, and what priorities need to be tackled. CSF contributed to a document that is released today on selected critical environmental issues facing Sri Lanka, aimed at informing prospective legislators in our next Parliament.

Several pioneering businesses in Sri Lanka are addressing waste management challenges through innovative and sustainable solutions, and their business models demonstrate circular economy approaches. The Centre for a Smart Future (CSF) identified three such businesses and explored their entrepreneurial journeys and business models. Each of the case studies exemplify a unique approach to managing waste and provides learnings relevant to waste management strategies in the country. Their narratives are also indicative of gaps and opportunities for policy change that would foster entrepreneurship and innovation.

For a recent Roundtable on green finance with financial institutions and development partners, CSF had the opportunity to provide inputs into the design of the session and provide concluding insights at the end of the session. This Analytical Note serves as a recap of the key findings and takeaways on the progress of implementing green finance in Sri Lanka, the near-term prospects, and current and emerging challenges to be tackled.

Green finance is getting greater attention in Sri Lanka, as banks and finance companies see it as a new area for lending, and the number of potential projects that need finance keep growing. CSF collaborated with Biodiversity Sri Lanka to better understand what this space is like right now. We surveyed 20 financial institutions to understand multiple aspects of their engagement with green finance.

Environmental disclosures are essential for accountability and transparency, but navigating the complex reporting landscape remains a challenge in Sri Lanka. From carbon accounting frameworks to sustainability standards, a myriad of acronyms shapes corporate accountability. As regulations tighten, understanding this evolving landscape and aligning with global expectations has become increasingly critical.

Is Sri Lanka ready for debt instruments linked to nature? This was the focus of a knowledge sharing and engagement session that CSF held last month, at the 'Festival of Ideas' organised by the Bandaranaike Centre for International Studies (BCIS). The session titled, ‘Debt and Dugongs’, was led by CSF Research Associate Ashani Basnayake, and joined by CSF Director Anushka Wijesinha. Participants were drawn from civil society, private sector, development partners, and government.

Sri Lankan stakeholders need to view the new UNFCCC COP29 deal that set new rules for carbon markets, objectively. While it offers a new global framework for blue carbon projects - an area of emerging interest for Sri Lanka - it does come with many gaps and risks. Understanding the limitations of the deal, and indeed the complexities of blue carbon projects, is crucial for meaningful action.

While ESG seeks to channel investment towards companies that are environmentally responsible, socially conscious, and well-governed, their true sustainability impact remains debated. Several issues have been highlighted in recent reports. For Sri Lankan firms, a critical look at ESG is timely, to make meaningful progress on charting a greener, climate-resilient economic future.

A new report by CSF titled, 'Acronyms and Accountability: Strategic Insights on Corporate Environmental Disclosures in Sri Lanka' offers a deeper examination of corporate environmental disclosures and their significance for Sri Lanka’s sustainability journey. It aims to provide practical recommendations for decision-makers, businesses, and stakeholders to adopt more effective and impactful disclosure practices.

A new publication by CSF helps to unpack the role of Blue Carbon ecosystems such as mangroves, seagrass and salt marshes in Sri Lanka in combating climate change, and how Blue Carbon projects can be leveraged to finance coastal ecosystem conservation. This latest Knowledge Primer explains these aspects, reviews the international mechanisms that guide blue carbon markets, and puts forward key considerations for Sri Lanka in implementing blue carbon schemes.

Tourism in Sri Lanka stands at a crossroads. While the industry is a crucial driver of economic recovery, it also places immense pressure on the country’s natural resources. This paradox—where tourism both depends on and threatens nature—requires urgent attention for long-term sustainability. CSF's new report 'Spotting the Problem' explores this intricate relationship through the lens of complexity theory, highlighting the case of overcrowding and safari misbehaviour in Yala National Park Block 1.

In 2024, the Centre for a Smart Future (CSF) conducted a research study on how local stakeholders perceive the interactions between tourism and nature in Maskeliya, Kalpitiya, and Yala National Park, with the objective of unpacking destination-level realities of how tourism activities are taking place in Sri Lanka’s nature-abundant tourism sites. This Background and Scoping Report provides details on the rationale and objectives of the study, and serves as a reference document for anyone who wants to know more about the methodologies used and the limitations encountered that shaped the findings and observations of the study.

Based on a suggestion at a recent Knowledge Roundtable hosted by CSF, our researchers set out to compare various innovative financial solutions available for conservation and identify which might be the most desirable and feasible to implement. It provides a starting point for industry players, regulators, policymakers, and other interested parties to make meaningful improvements to financing marine conservation in Sri Lanka

Moving beyond GDP and focusing on ‘green growth’ could unlock a host of new opportunities such as job creation, restoration of natural capital, and increased climate adaptation. Policymakers must explore alternatives to GDP to anchor Sri Lanka’s recovery from the economic crisis.

A new paper under CSF’s Natural Capital Forum explores a sovereign financing instrument linked to nature called Debt for nature swaps (DFNS), their usage globally and relevance to Sri Lanka in overcoming the debt crisis and fiscal constraints to conservation.

Nishan Perera - Sri Lanka's leading marine ecologist, an avid diver and underwater photographer - argues that contradictory policies are hurting our prospects for striking a smarter balance between marine conservation and maritime-related economics activities like fisheries and tourism.

The debate on whether biodiversity should be economically valued remains highly polarized and a more nuanced contextual approach is required. Yet, it's clear that striking a balance between environmental, social and economic objectives is vital.

The fact that the creation of a 269 hectare artificial land parcel attached to the capital, with sand extracted from nature, materially changed the country’s GDP base was startling. It reaffirmed our growing discontent on how we measure economic growth.

In this interview in the Smarter Sustainability series, Anisha Rajapakse explores key issues for Sri Lanka in strengthening its positioning as a trusted and preferred sourcing location for EU buyers, using GSP+ and beyond.

Ecological conservation sites in Sri Lanka can benefit from improved financial planning and management, requiring alignment between conservation and financing stakeholders. However, lack of knowledge on science-based conservation metrics limits attention to this area.

Climate shocks and natural ecosystem losses pose development challenges, especially for developing countries like Sri Lanka. Economic crises and debt restructuring pressure these countries, highlighting the need for innovative financing solutions. This article explores six financial instruments and initiatives to inspire Sri Lanka's efforts.

A new publication by CSF helps unpack what blue bonds are, for stakeholders in both the finance as well as environment professions, alongside Sri Lanka's interest in pursuing such instruments following other developing countries like Seychelles, Belize, Barbados, and others.

Sri Lanka's President has announced a policy directive to transition to 100% organic farming and ban chemical fertilizers and agro-chemicals. The decision has sparked debate, with concerns about food security and export impacts. Agriculture economist Chatura Rodrigo discusses the transition, implications for farmers, and policy gaps.

As Sri Lanka looks to leverage innovative financial solutions for both public finance as well as environmental conservation objectives, a key mechanism that stakeholders must become familiar with is 'Conservations Trust Funds'. A new publication by helps unpack what Conservations Trusts are, what key features they have, why they are used, and provides some insightful examples of their deployment in other countries around the world.

There is now a growing interest in Sri Lanka on the concepts and prospects for green finance among Sri Lankan policymakers, regulators, and financial intermediaries, and some initial steps have been made to orient towards green lending. Yet, how far has actual implementation come and what are the prospects for the near-term? What are some of the critical issues that the financial sector must contend with, as it aims to support investments in a climate-resilient and nature-positive economic recovery?

As Sri Lanka's economic crisis jeopardizes sustainable development, the looming threat to environmental conservation and natural resource management is becoming apparent. The government's shrinking fiscal space intensifies the limiting of budgets for crucial initiatives. Meanwhile, much of the private sector is yet to fully integrate nature into their business and investment decisions. To add new ideas to the debate and push the conversation further, CSF and Echelon are collaborating on a new interview series launching soon.

CSF is setting out to study the dynamics shaping a possible tourism recovery path that is just by nature, and study stakeholder perceptions around the barriers for, and opportunities to drive, a more nature-positive tourism sector.

From our work with BRT on sustainable financing for marine conservation, read our Analytical Note Edition 1, from our first Knowledge Roundtable. It covers the need for site specific considerations for financing tools, government buy-in, and the alignment of financial incentives with stakeholder perspectives.

From our work with BRT on sustainable financing for marine conservation, read our Analytical Note Edition 2, from our second Knowledge Roundtable. It focuses on the imperative to develop bankable marine conservation plans, incorporating financial incentives and showcasing economic feasibility.

CSF Research Associate Senith Abeyanayake reflects on a recent engagement with tourism industry leaders for a panel on charting a nature-positive economic recovery for Sri Lanka's tourism. This is part of CSF's 'Perspectives Series' of articles.

As Sri Lanka endures mounting pressure on public finances and explores new avenues for funding conservation efforts, CTFs have emerged as a promising mechanism that could provide long-term financing for its Protected Areas (PAs). David Meyers, Executive Director of the Conservation Finance Alliance (CFA), spoke at a recent Knowledge Roundtable organised by CSF on Conservation Trust Funds. Read our Analytical Note Edition 3, which summarises the key takeaways and insights from David Meyers and discussion generated by the participants.