Colombo, Sri Lanka, 27 May 2026 — With disasters and other climate change impacts looming large, Sri Lanka needs strong social and financial protection mechanisms to help communities, businesses, and public institutions prepare and recover, according to discussions at the Lighthouse Event on Climate and Disaster Risk Finance and the Multi- Actor Partnership in Sri Lanka.
Convened by SLYCAN Trust on 21 May 2026 in Colombo, the event brought together government institutions, financial sector representatives, development partners, civil society, academia, and national as well as international experts to discuss how Sri Lanka can strengthen preparedness and resilience in the face of increasing climate risks.
The event focused on a key question facing the country: how can financial protection reach vulnerable communities, small businesses, workers, and public systems before and after climate-related shocks such as floods, droughts, landslides, and cyclones?
Recent events, including Cyclone Ditwah, have highlighted the challenges faced by households, businesses, and public institutions in coping with financial losses caused by extreme weather. Discussions highlighted the need for stronger preparedness, fast recovery support, and coordination across institutions to reduce these impacts.
The event also marked six years of work under the Multi-Actor Partnership (MAP) on Climate and Disaster Risk Finance (CDRFI) in Sri Lanka. Initiated by SLYCAN Trust as part of a global programme supported by the German Federal Ministry for Economic Cooperation and Development (BMZ), this partnership provides a platform to connect local experiences, national policy processes, and global discussions on climate risk finance.
Speaking at the event, Dennis Mombauer, Director: Research & Knowledge Management at SLYCAN Trust, reflected on progress made and potential pathways for strengthening climate and disaster risk management and finance in Sri Lanka.
He noted the importance of risk and finance literacy, trust, and capacity-building as well as challenges around data, coordination, and inclusive financial mechanisms to effectively build long-term resilience to climate risks.
“We can quantify risks, but we need to find mechanisms and instruments to better address the remaining uncertainties and find solutions that protect people, not just when disaster strikes, but also ahead of time,” he said.
Hanna Bartels, Programme and Contract Manager for International Programmes at CARE Germany, placed Sri Lanka’s experience within a wider global context. She noted that similar work is being carried out across several countries and regions, including Bangladesh, the Philippines, Madagascar, Malawi, Senegal, and the Caribbean.
“Nobody can do this alone,” she said. “We really need all these different perspectives coming together to then develop something that really works. The government is important when it comes to the enabling environment and policies, the private sector is important when it comes to products, and civil society and communities help ensure that these solutions respond to actual needs on the ground.”
She added that the discussions in Sri Lanka come at an important time, with growing recognition among public and private actors that climate preparedness must be strengthened and that solutions need to be developed collaboratively rather than in isolation. Key issues discussed during the event included the need for better risk data, improved access to finance, stronger coordination between institutions, and financial tools that can support vulnerable communities, farmers, and small businesses facing climate-related losses. Participants also discussed the role of commercial banks, insurance providers, development finance institutions, and public agencies in supporting more effective climate and disaster risk management.
The discussions further highlighted emerging international mechanisms meant to support countries dealing with climate-induced loss and damage. Angela Rivera, former co-chair of the Santiago Network on Loss and Damage, who currently serves as SLYCAN Trust’s Coordinator: Latin America and Caribbean, outlined how the Santiago Network supports developing countries by connecting them with organisations, experts, and technical assistance providers.
“The Network is now fully operational and can support activities ranging from loss and damage assessments and data systems to policy development, coordination mechanisms, capacity-building, and access to finance,” she said.
The discussions throughout the event highlighted sector-specific climate-related risks and vulnerabilities. In the apparel sector, heat stress and worker protection were identified as growing concerns. In tourism, informal and seasonal workers were noted as particularly exposed when climate shocks disrupt business activity. In agriculture, speakers discussed the need to strengthen insurance and financial support mechanisms for farmers and rural Communities.
The event also drew attention to the gendered implications of climate risks and the importance ] of local ownership. Community-level experiences from vulnerable areas showed that climate risk is not only an environmental issue, but also a development, livelihood, finance, and social protection issue.
SLYCAN Trust noted that the next phase of work will focus on moving from evidence and dialogue towards more practical solutions, including stronger partnerships, better use of data, and financial mechanisms that are more responsive to the needs of communities, MSMEs, and climate-affected sectors.
The Lighthouse Event formed part of SLYCAN Trust’s ongoing work to advance evidence- based climate action and strengthen Sri Lanka’s ecosystem for climate and disaster risk finance.
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