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Lanka among countries that could benefit from debt-for-nature swaps
Sri Lanka is among countries that could benefit from debt-for-nature swaps, where poorer countries have debt written off in return for protecting ecosystems, such as barrier reefs or rainforests, according to agency reports.
Such debt-for-nature swaps could provide $100 billion for the fight against climate change, Arab News said, quoting a new report by the UK-based, non-profit International Institute for Environment and Development (IIED).
The IIED based the estimate on the possibility of debt swaps in many of the 49 less developed countries seen as most at risk of debt crises.
Laura Kelly, the director of IIED’s sustainable markets research group, said countries that could benefit included Sri Lanka, Pakistan and Gambia in West Africa.
Belize, Ecuador, Barbados, Gabon and Cape Verde have all done such swaps in recent years and Kelly said many of those in debt distress and also often most threatened by global warming, were looking at them.
The IMF and World Bank, whose figures the analysis is based on, estimate the countries focused on collectively owe $431 billion, mostly to wealthier governments, the IMF itself and pension and hedge funds.
At the same time, these countries received less than $14 billion in climate finance according to OECD figures from 2021, which is significantly less than they need to limit climate change or at least adapt to it.
The aim of IIED’s report is to encourage a drive for more debt swaps at the upcoming IMF and World Bank Spring meetings which start later this week.
Kelly said countries that could benefit are at “huge risk” of sea level rise and she stressed and needs to invest heavily in flood prevention and wetland preservation.
Ghana, too, which like Sri Lanka, is now restructuring its debt, is another obvious candidate. One of its key exports, cocoa beans used for chocolate, could thrive if more is done to protect its vital rainforests.
“For governments (that do debt swaps) it creates some fiscal space, but also it helps to achieve outcomes in terms of climate and nature that have global impact,” Kelly said, adding that many countries were interested in potentially doing so.
Latest News
Advisory for Severe Lightning issued for the Western, Sabaragamuwa, Central, North-western, North-central, Southern, Uva provinces, and Ampara and Batticaloa districts
Advisory for Severe Lightning
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
Issued at 12.00 noon 23 April 2026 valid for the period until 11.30 p.m. 23 April 2026
Thundershowers accompanied with severe lightning are likely to occur in the Western, Sabaragamuwa, Central, North-western, North-central, Southern, Uva provinces, and in Ampara and Batticaloa districts after 1.00 p.m.
There may be temporary localized strong winds during thundershowers. General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.
ACTION REQUIRED:
The Department of Meteorology advises that people should:
• Seek shelter, preferably indoors and never under trees.
• Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
• Avoid using wired telephones and connected electric appliances during thunderstorms.
• Avoid using open vehicles, such as bicycles, tractors and boats etc.
• Beware of fallen trees and power lines.
• For emergency assistance contact the local disaster management authorities.
News
Compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level – PM
Prime Minister Dr. Harini Amarasuriya emphasized that compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level. She further stated that all necessary allocations have already been made to Provincial Councils and instructed that the progress of disaster damage assessments and reconstruction efforts be closely monitored at the provincial level.
The Prime Minister made these remarks at a discussion held on Tuesday (21) at Temple Trees under her patronage, aimed at informing Chairpersons of District Coordination Committees and public representatives from disaster-affected districts, in order to accelerate the implementation of the “Rebuilding Sri Lanka” programme. The discussion focused on expediting disaster relief and compensation payments, as well as the swift restoration of infrastructure damaged by the disaster.
The Prime Minister emphasized that Rs. 500 billion has been allocated for damages caused by the Ditwah cyclone, and that all relevant development activities must be completed before the end of 2026. The Prime Minister also instructed officials to pay special attention to resolving issues at the local level that are causing delays in compensation payments.
Senior Additional Secretary to the President, G.M.R.D. Aponsu, stated that the estimated cost for reconstruction following the Ditwah cyclone is approximately USD 3.4 billion. Accordingly, funds have been allocated for compensation across several sectors including housing and social infrastructure, agriculture and livestock, fisheries, industry and livelihoods, and irrigation. He further noted that 99% of the Rs. 25,000 allowance has already been disbursed, while 95% of the Rs. 50,000 resettlement allowance has been paid. Compensation for fully and partially damaged houses is still ongoing, and 99% of temporary relief centres have been closed.
Additionally, attention was drawn to several other measures, including providing Rs. 25,000 to affected schoolchildren, paying Rs. 1 million as compensation for each deceased individual, compensation for children who lost one or both parents, support for persons with disabilities affected by the disaster, compensation for agricultural losses, and expediting resettlement of displaced families. Measures such as allocating land for new housing construction and accelerating the issuance of reports from the National Building Research Organization were also discussed.
Focus was also placed on the reconstruction of affected schools, hospitals, and daycare centres, improving the accuracy and speed of data collection at the local level, and accelerating infrastructure development.
The event was attended by Minister of Plantation and Community Infrastructure Samantha Vidyarathna, Minister of Public Administration, Provincial Councils and Local Government Dr. Chandana Abayarathna, Deputy Minister of Agriculture and Livestock Namal Karunaratne, Deputy Minister of Trade, Commerce, Food Security and Cooperatives R.M. Jayawardena, Deputy Minister of Education Dr. Madhura Senevirathna, Members of Parliament, Chairpersons of District Coordination Committees, Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Additional Secretary to the President Jayantha Bandara; and officials of the Prime Minister’s Office.
[Prime Minister’s Media Division]
News
Parliament urged to probe questionable payment of USD 2.5 mn from Treasury
… five senior officials suspended
President’s Counsel Maithri Gunaratne has urged the Parliament to intervene in an ongoing investigation conducted by the Treasury into the wrongful payment of USD 2.5 mn loan instalment to a third party instead of the country that gave the loan to the Government of Sri Lanka.
Gunaratne, in a letter addressed to Speaker Dr. Jagath Wickremaratne copied to leaders of all political parties represented in Parliament, General Secretaries of those political parties, Committee on Public Finance, Auditor General and National Audit Office, has stated the payments were made between December 2025 and January 31, 2026.
Lawyer Gunaratne took up the issue on behalf of civil society grouping ‘Free Lawyers’ after gathering information related to the alleged payments. Spokesman for ‘Free Lawyers’ Keerthi Tennakoon told The Island that they expected the Parliament to act swiftly and decisively. Pointing out that the ‘disappearance’ of USD 2.5 mn took place amidst the massive National Development Bank (NDB) fraud, amounting to Rs. 13.2 bn, Tennakoon emphasised the responsibility of the Parliament to take charge of the investigation.
According to Gunaratne’s letter, seen by The Island, following an international investigation carried out by a technical committee, two Treasury Directors, two Deputy Treasury Directors and a senior official responsible for IT had been interdicted.
As the relevant payments amounted to USD 2.5 mn, the process couldn’t have been completed without the involvement of the Deputy Secretary, Treasury and Treasury Secretary, Gunaratne stated.
According to him, the Central Bank had been responsible for loan payments until recently but the alleged irregularities happened after that task was brought under the Department of External Resources and Public Debt Management Office.
The Free Lawyers said that as the Secretary to the Treasury, Harshana Suriyapperuma, was also the Secretary to the Finance Ministry, the Parliament should intervene to establish a suitable mechanism to investigate this.
Former NPP National List lawmaker Harshana Suriyapperuma succeeded Mahinda Siriwardena in late June 2025.
Tennakoon said that they felt the need to bring the shocking development to the public domain as those who knew of the incident remained silent.
By Shamindra Ferdinando
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