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.

Marine and coastal ecosystems in South Asia—crucial for food security, livelihoods, and disaster resilience—face intensifying climate risks but receive limited adaptation finance. A new CSF report highlights the Bay of Bengal as a strategic entry point for Canada in South Asia, to support nature-based, climate-resilient development through a regional regenerative blue economy.

Global trade is entering a period of turmoil that is likely to be more acute and more challenging than during the Covid-19 pandemic five years ago. Smaller economies like Sri Lanka that depend on international markets and who have benefited from a relatively predictable international trading system, will be worst affected. In this context, CSF's latest Policy Note outlines 8 key trade and competitiveness reforms and strategic initiatives that Sri Lanka must now prioritize, to build resilience and success.

With the worst of the COVID-19 pandemic and economic crisis behind us, many have been quick to categorise Sri Lanka’s status quo as being in a state of economic recovery. However for Colombo’s working class poor, daily life remains unchanged. Even in Colombo where the wheels of economic development are turning the fastest, these communities are using the same survival strategies since 2022 of cutting expenses, depending on borrowing from the informal credit market, and juggling multiple income streams just to get by. If households are still making trade-offs and sacrifices as before, can we truly call this a recovery?

Debt-for-nature swaps (DFNS) are now emerging as a mainstream financial instrument, mobilising millions of dollars in conservation funding worldwide. Done correctly, a DFNS is an opportunity, not a liability. For Sri Lanka, a well-structured DFNS remains both financially and ecologically valuable, offering an opportunity to secure long-term conservation funding, even in a post-restructuring scenario.