Government reshapes ODA Policy to promote climate resilience growth
Sri Lanka has shifted from fragmented donor projects to a coherent, strategic approach to external assistance as it rolls out the National Climate Finance Strategy 2025-2030, Finance Ministry sources said.
Using the strategy as the guiding framework, the government has moved quickly to enclose new donor commitments and route them through national priorities building resilience, strengthening infrastructure, and catalysing private investment.
The ministry will streamline the administration and disbursement of Official Development Assistance (ODA) in Sri Lanka to fund priority sectors including climate resilience, infrastructure, and sustainable development and converge it with best global practices, a senior ministry official said.
Together, government reports and donor announcements suggest that ODA to Sri Lanka in 2025 will be considerably higher than recent-year averages.
Based on public releases and approvals of major programmes, an approximate total of ODA disbursements to Sri Lanka in 2025 is estimated to be around US$ 4.7 billion.
The Asian Development Bank’s indicative allocation of around $900 million for Sri Lanka in 2025 and the World Bank Group’s multi-year support package (totalling more than $1 billion, with significant 2025 commitments) are central to the increase in flows.
India’s expanded grant assistance, reported at roughly $780 million, further bolsters the resource envelope available this year.
Smaller but strategically important inputs from the bilateral partners and specialised climate activity, round up the overall financing picture.
By integrating donor funding into the national development plan, the Treasury and the Department of External Resources can prioritise bankable projects in renewable energy, water management and coastal protection.
The political imperative to demonstrate measurable results and fiscal probity is stronger, giving donors incentives to accept unified reporting and Sri Lanka motives to strengthen public disclosure.
The ODA commitment this year synthesises announced allocations, programme approvals and recent high-level pledges; final disbursements and the split between loans, grants and blended instruments will differ over time.
If the government follows through on integration, coordination, transparency and institutional strengthening as set out in the strategy, this surge in ODA could move from emergency support to a durable engine for Sri Lanka’s climate-resilient development.
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