Debt for Climate and Nature Swaps in Sri Lanka: Scoping Study

With debt restructuring completed, Sri Lanka is now better positioned to pursue a DfCN swap. Starting preparatory work early would improve the government’s readiness for effective implementation.

Implementing DfCN swaps requires both global financial reforms, with stronger support for developing countries’ debt and climate investments, and internal efforts like long-term planning, sector-wide commitments, and capacity building. While DfCN swaps can restore financial credibility and address financing needs, their success depends on the government’s willingness to enact policy reforms and negotiate favourable debt agreements.