Public Investment for Closing the SDG Financing Gap: Sri Lankan Perspective

Series: Macro, Trade, & Economic Growth

Realising ‘United Nations 2030 Agenda for Sustainable Development’ requires massive investment allocation. Despite its undeniable importance, the flow of funds to sustainable development goals (SDGs) is inadequate. Assessing SDGs investment gap is significant and supports sufficient flow of funds to 2030 Agenda. Public investment plays a significant role in 2030 Agenda. Using an input-outcome-based costing methodology, Sri Lanka’s additional investment requirement for SDGs by 2030 is estimated to be around USD 1.4 trillion. With an average annual public investment of 5-7% of GDP, allocating additional funds for SDGs is challenging.

The study highlights alternative options for SDG financing and how the SDG framework can be used as a foresight planning tool to minimise disparities in public investment planning.