Sri Lanka: An island nation transitioning from crisis management to ecological and social resilience

Sri Lanka is a tropical island nation with high biodiversity, a rich cultural history, and a geopolitically sensitive location in the Indian Ocean. As a bridge between Asia, Africa, and the Middle East, Sri Lanka was long an emerging developing country with a high literacy rate, a strong agricultural sector, and growing tourism numbers.

However, in the wake of the economic and debt crisis of 2022, the country is undergoing a profound transformation—balancing fiscal stabilization, social compensation, and an urgently needed ecological shift. Rural poverty, unequal access to water, smallholder debt, coastal overuse, and climate risks pose major challenges.

At the same time, Sri Lanka has strong humanitarian capabilities, active civil society networks, and a growing interest in sustainable agriculture, environmental education, and regenerative infrastructure—with international support.

Sri Lanka's Development Strategy

Since the debt crisis, the Sri Lankan government has been pursuing a reconstruction process that strategically embraces eco-social development approaches:

National Policy Framework “Vistas of Prosperity and Splendor” (2019–2025)

Framework for economic diversification, sustainable agriculture, education, energy independence, and social inclusion.

National Adaptation Plan for Climate Change Impacts (NAP)

A multi-year strategy for cross-sectoral climate adaptation, with a focus on agriculture, water, health, coastal protection, and urban resilience.

Green Development Strategy (2023)

Current repositioning based on post-crisis planning—with a focus on the circular economy, ecological land management, and green jobs.

Vision 2030 – SDG Roadmap

Institutionalized alignment of the 2030 Agenda with sectoral development plans and annual progress reporting to the UN.

An Overview of the Challenges

Economic Fragility & Rural Debt

After years of high foreign debt, foreign exchange shortages, and import bottlenecks, many households—especially smallholder farmers—are facing financial hardship. Many local economic cycles are undercapitalized.

Climate Change & Water Security

Droughts, heavy rains, and cyclones are on the rise. Over 60% of agricultural production depends on rainfall, while many regions lack access to functioning water infrastructure.

Coastal Erosion & Loss of Biodiversity

Sri Lanka’s 1,340-kilometer coastline is increasingly affected by erosion, coral bleaching, overfishing, and pollution. The decline in marine biodiversity is also having an impact on food security and tourism.

Inequality & sectoral fragmentation

Although the literacy rate is high (>92%), there are significant disparities between urban and rural areas, the north and the south, and the Sinhalese and the Tamils—particularly in terms of access to infrastructure, technology, and sustainable employment.

Global Alliances & Multilateral Cooperation

Climate Finance & Adaptation Programs

Sri Lanka is a partner of the Green Climate Fund (GCF), the NDC Partnership, and the Climate Risk Early Warning Systems (CREWS)—with projects focused on water security, risk management, and climate-resilient infrastructure.

SDG Implementation & Governance

With the SDG Secretariat under the Prime Minister and a national SDG data portal, Sri Lanka has a consolidated structure for monitoring progress toward the goals and ensuring integration at the subnational level.

Reconstruction Partnerships

Support from the World Bank, ADB, UNDP, GIZ, and Japan in the areas of education, rural development, agricultural reform, and energy efficiency—with an increasing focus on the circular economy and social protection.

Country Radar – Sri Lanka at a Glance

Category Indicator Value (2023 – Vietnam) Interpretation
Social Affairs Poverty rate (overall) approx. 25% (increase in 2022) A challenge despite developmental successes
Energy Share of renewables in the electricity mix approx. 52% Very high – among the top performers in the region
Environment CO₂ emissions per capita 1.1 tons per year Very low
Education literacy rate approx. 92.6% High level of education
Infrastructure Access to clean water rural: 85% / urban: 98% Very good in urban areas, needs improvement in rural areas
SDG Progress UN SDG Index 66.2 / 100 Moderate progress

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Where we start

The Green Nations Foundation focuses its work in Sri Lanka on four strategic areas of action:

Water Resilience & Climate-Resilient Agriculture

Promoting efficient irrigation, water storage technologies, agroforestry, and small-scale water cooperatives in the northeast and the central highland regions.

Decentralized Energy Supply & Circular Economy Solutions

Support for solar and biogas projects in communities with unreliable electricity supplies—linked to training initiatives and waste management.

Biodiversity & Coastal Protection

Restoration of degraded coastal ecosystems, protection of marine biodiversity, mangrove reforestation, and sustainable aquaculture through community partnerships.

Social Entrepreneurship & Rural Employment

Support for social enterprises and cooperatives in economically disadvantaged regions, including the promotion of women-led initiatives in agriculture, crafts, and tourism.

SDG Priorities

Green Nations’ work in Sri Lanka makes specific contributions to the following goals of the 2030 Agenda:

Working Together to Create Solutions

Platforms for Sustainable Change

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