Sri Lanka must strengthen its financial and social protection systems to better withstand climate-related disasters, according to experts and stakeholders who gathered at a climate risk finance event organized by SLYCAN Trust in Colombo.

The Lighthouse Event on Climate and Disaster Risk Finance and the Multi-Actor Partnership (MAP), held on 21 May, brought together representatives from government, the financial sector, development agencies, academia, civil society, and international experts to discuss ways of improving the country’s preparedness and resilience against growing climate threats.

Participants emphasized the urgent need for financial protection mechanisms that can support vulnerable communities, small businesses, workers, and public institutions before and after disasters such as floods, droughts, landslides, cyclones, and extreme weather events. Recent impacts from Cyclone Ditwah were cited as a reminder of the financial strain climate shocks can place on households, businesses, and government agencies.

The event also marked six years of the Multi-Actor Partnership on Climate and Disaster Risk Finance in Sri Lanka, a platform established by SLYCAN Trust under a global programme supported by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ).

Dennis Mombauer, Director of Research and Knowledge Management at SLYCAN Trust, highlighted the importance of improving risk and finance literacy, building trust, strengthening institutional capacity, and addressing gaps in data and coordination. He stressed the need for financial instruments that can protect people not only after disasters occur but also in anticipation of future risks.

CARE Germany’s Programme and Contract Manager for International Programmes, Hanna Bartels, underscored the importance of collaboration among governments, financial institutions, businesses, civil society, and communities. She noted that similar initiatives are being pursued in several countries worldwide.

Discussions also focused on sector-specific vulnerabilities, including heat stress in the apparel industry, climate-related disruptions in tourism, and the need for stronger insurance and financial support mechanisms for farmers and rural communities.

Commercial Bank of Ceylon PLC’s new branch in Port City Colombo is poised to bring world-class banking services to Sri Lanka’s emerging international financial hub.

Located at Building 04 in Area 02 of the Port City Business Centre – Commercial Hub, Commercial Bank’s Port City Colombo branch will function as a fully-fledged banking operation, strengthening the Bank’s presence in one of Sri Lanka’s most strategically significant emerging economic zones. Designed to serve the evolving financial requirements of corporates, investors, businesses, professionals and retail customers within the Port City Colombo ecosystem, the branch offers access to Commercial Bank’s comprehensive portfolio of financial solutions. These include current and savings accounts, fixed deposits, personal and business lending, housing and leasing facilities, credit and debit card services, inward and outward remittances, foreign currency accounts and transactions, trade finance solutions, import and export services, corporate banking, treasury and foreign exchange services, cash management solutions and digital banking facilities.

By combining full-service branch banking with digital capabilities and uninterrupted self-service access, the new branch reflects Commercial Bank’s commitment to delivering future-ready, accessible and internationally aligned financial services in support of Port City Colombo’s growth as a dynamic hub for commerce, investment and innovation.

Following the recent decision by the Monetary Policy Board of the Central Bank of Sri Lanka to raise the Overnight Policy Rate by 100 basis points, a corresponding increase in market interest rates has been reported.

In line with this shift, several banks have already taken steps to increase the interest rates charged on credit cards. Banks have begun notifying their customers that the annual interest rate for credit cards will rise from the current 26% to 28%, effective from July 1st.

This rate hike comes at a time when credit card usage is on the rise. According to the Central Bank of Sri Lanka, the total number of active credit cards in the country stood at 2,166,186 at the end of 2025. By the end of the first quarter of 2026, this number had grown to 2,215,853 cards.

The latest data also highlights a significant increase in consumer debt. The total outstanding balance on credit cards was Rs. 189,706 million as of December 31, 2025. By March 31, 2026, this figure had climbed to Rs. 194,105 million, reflecting a growing reliance on credit despite the looming interest rate adjustments.