Agribusinesses, entrepreneurs, communities, and other stakeholders in Sri Lanka’s agriculture sector are faced with a complex landscape of risks as well as a need to shift towards more sustainable, climate-friendly, and resilient approaches. The ramifications of climate change exacerbate existing issues, including through rising temperatures and extreme weather events that disrupt agricultural activities, damage farmland, and reduce crop yields and livestock productivity.

Building resilience in the face of these challenges requires significant investment in climate-smart agricultural practices and value chains to improve productivity, manage risks, and minimise negative environmental or socioeconomic impacts. However, public finances are constrained by budgetary limitations and rising government borrowing costs, coupled with high interest rates. Furthermore, the agricultural sector often struggles to access traditional financing due to the perception of low profitability and high risks associated with farming.

Innovative financial instruments and partnerships between the public and private sector, for example, through blended finance, knowledge-sharing, and joint development of facilities, mechanisms, and instruments, could make an important contribution to manage existing risks and achieve sustainable economic growth. To further explore this important thematic nexus, the Sustainable Development Council of Sri Lanka and SLYCAN Trust hosted a thematic dialogue April 30th, 2024, at the Courtyard by Marriot, Colombo.