Climate change increasingly shapes a complex landscape of compound, cascading, and covariate risks that affects all economic and societal sectors, including food systems, rural livelihoods, settlements, infrastructure, tourism, and trade. Particularly for climate-vulnerable developing countries such as Sri Lanka, it is vital to identify and manage these risks through accessible, proactive, anticipatory, and evidence-based approaches that can protect development gains as well as human lives, livelihoods, wellbeing, and prosperity.
Sri Lanka has a range of climate and disaster risk finance and insurance (CDRFI) instruments and mechanisms in place, but there is significant potential to close gaps and enhance these existing frameworks. Innovation, mindset shift, multi-actor partnerships, and inclusive processes are pivotal to overcoming challenges and work towards transforming Sri Lanka's CDRFI ecosystem to address current and future needs in evidence-based, context-specific, equitable, accessible, affordable, accountable, and transparent ways.
This report aims to map key climate-related risks and vulnerabilities related to climate change as well as the awareness, capacities, resources, and priorities of actors in the country's food systems, farming house-holds and communities, and agricultural supply or value chains, particularly in the context of climate change adaptation and climate-induced loss and damage. Based on 2.5 years of research and stakeholder engagement, it identifies priorities and provides recommendations to enhance risk management and finance in Sri Lanka's food systems, mobilize risk finance and investment, empower affected communities, and build mid- and long-term resilience.
This knowledge product has been developed as part of the project "Multi-Actor Partnership for Climate and Disaster Risk Financing and Preparedness in the Context of the InsuResilience Global Partnership" supported by the German Federal Ministry for Economic Cooperation and Development (BMZ).