Asia debt policymakers meet in Colombo as climate risks deepen fiscal pressures

Senior public debt officials, central bankers and multilateral institutions from across Asia and the Pacific convened in Colombo last week to examine how the rising climate risks, elevated debt burdens and global economic uncertainty are reshaping the fiscal management priorities across the emerging economies.

The three-day 2026 Asian Regional Public Debt Management Forum, jointly organised by Sri Lanka’s Public Debt Management Office (PDMO) and Asian Development Bank (ADB), came at a time when several economies in the region continue to navigate tighter global financing conditions, climate-related shocks and mounting debt servicing pressures.

Held under the theme ‘Climate Resilience and Debt Sustainability in Asia’, the forum focused on debt sustainability analysis, disaster risk financing, green and sustainable financing instruments and the role of local currency debt markets in strengthening fiscal resilience.

Opening the forum, Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando stressed the importance of stronger public debt management frameworks and closer regional cooperation to support macroeconomic stability and long-term economic growth.

ADB Vice President Finance and Risk Management Roberta Casali also addressed the gathering, alongside senior Sri Lankan economic policymakers including Finance Ministry Secretary Dr. Harshana Suriyapperuma and Central Bank Deputy Governor Dr. Chandranath Amarasekara.

The event brought together representatives from the IMF, OECD, European Central Bank, Commonwealth Secretariat, UNCTAD and S&P Global Ratings as well as finance ministries and debt management offices from across the Asia-Pacific region.

Discussions also examined how high debt levels are increasingly constraining monetary policy flexibility in emerging economies, particularly as governments face rising climate adaptation and disaster recovery costs.

A dedicated session on Sri Lanka’s recently established PDMO outlined the country’s institutional reforms aimed at strengthening governance, operational efficiency and debt management practices following its sovereign debt crisis and restructuring process.

The forum further explored the use of technology and artificial intelligence in debt management operations, while the participants also exchanged experiences on governance reforms and debt-related vulnerabilities faced by the small island economies.

The event concluded on May 29.