New funding window opens for SL’s climate loss and damage

Mathilde Laurans

Chamani Kumarasinghe - Pic By Nisal Baduge

By Shabiya Ali Ahlam

Sri Lanka has been presented with a fresh opportunity to access global support for climate-related loss and damage, as the newly operational Loss and Damage Fund opened its first call for funding, creating a formal pathway for vulnerable countries facing intensifying extreme weather events.

Fund for Responding to Loss and Damage Deputy Executive Director Mathilde Laurans yesterday said the launch of the Barbados Implementation Modalities (BIM) marked a shift from negotiations to action. The Fund officially opened its first call for funding requests on 15 December 2025, beginning its startup phase.

“This milestone means that countries like Sri Lanka can now engage with us for support,” Laurans said, stressing that the Fund was designed with people at its centre, addressing both economic and non-economic loss and damage.

Virtually addressing a high-level climate finance forum, facilitated by SLYCAN Trust, in Colombo yesterday, she highlighted the importance of country-led, bottom-up approaches, noting that sustainable solutions must be shaped by national priorities.

Laurans shared the initial phase will test diverse models, from grants and community-led governance to public-private partnerships and insurance, while prioritising accessibility and simplified processes. 

“We are no longer just talking…we are taking action,” she said, reaffirming the Fund’s commitment to timely support for vulnerable countries.

Sri Lanka’s urgency was stressed by recent cyclone Ditwah that triggered flooding and landslides across the island nation, damaging infrastructure, agriculture and public services.

Meanwhile, addressing the forum, Ministry of Environment Additional Director at the Climate Change Secretariat Chamani Kumarasinghe noted that the disasters in Sri Lanka exposed gaps in preparedness, response and recovery, while also causing significant non-economic losses including displacement, psychological distress and damage to cultural heritage.

According to the Ministry of Environment, Sri Lanka has embedded loss and damage priorities in its National Adaptation Plan and updated NDC 3.0, and has begun preparatory work for an application to the Fund. 

At the same time, Kumarasinghe stressed the urgency of rapid recovery actions to protect livelihoods and restore critical services, particularly for farming communities, small enterprises, women and other high-risk groups.

Sri Lanka’s experience, she said, highlights a broader reality for climate-vulnerable developing economies and asserted that addressing loss and damage is not the responsibility of a single institution.It requires integrated approaches that combine policy, finance, technical expertise and local knowledge, stressed Kumarasinghe.

“...climate-related disasters are no longer rare occurrences. They are becoming more frequent, more intense and more disruptive for climate-vulnerable developing countries. The question is no longer if such events will occur, but how effectively we can prepare for them, respond to them and recover in ways that reduce future risk.”