Global trade tensions are causing uncertainty for Sri Lankan businesses. Exporters are grappling with not only the likelihood of higher taxes, but perhaps more crucially, the uncertainties around them. CSF is studying the effects of trade policy uncertainty on export-oriented businesses in Sri Lanka (with a focus on US tariff changes), and are conducting this brief survey to understand how business are navigating and coping with the changes. Findings from the research will also help businesses, trade chambers, and the government, understand the impacts better, and inform public-private dialogue around solutions. 

2024 was the warmest year on record. A recent report by the World Bank revealed that Sri Lanka is among a few South Asian countries identified with a temperature level that is considered too hot for people to be able to work safely outdoors for an average of six hours a day. When compared with other Asian cities, Colombo has made little or no effort to mitigate this overheating threat at a planning level. We highlight in this policy brief the impacts of heat stress on outdoor workers in the city and pathways for addressing climate change in Colombo that need to be acted on.

Sri Lanka faces mounting challenges in managing its rapidly growing electronic waste (e-waste) problem, with the country generating an estimated 4.2 kg of e-waste per capita annually. The projected increase in e-waste highlights the urgent need for Sri Lanka to strengthen its waste management infrastructure and regulatory frameworks. This article urges coordinated policy action on e-waste management.

As Sri Lanka is pushed to explore alternative markets and forge new partnerships, commercial diplomacy must be utilised as a proactive mechanism. While fiscal constraints persist, policies can focus instead on establishing long-term commercial diplomacy strategies for high-potential economies and bridging the gap between the private sector and the commercial diplomatic apparatus.

Sri Lanka’s extraordinary blue carbon ecosystems offer a powerful tool for climate mitigation and adaptation, while also providing a wealth of co-benefits essential for the well-being of our people and nature. However, the pursuit of blue carbon financing must be approached with utmost prudence and foresight, with the interests of our communities and ecosystems firmly at the centre.

Climate risk is credit risk. The question for Sri Lanka's banking sector isn't whether to integrate climate considerations into lending decisions - it's whether to lead this transformation or be overwhelmed by it. The institutions that begin this work immediately will not only protect their portfolios but position themselves as leaders in the climate-resilient economy that Sri Lanka must build to survive and thrive in the decades ahead.