Feasibility Assessment of a Debt-for-Mine-Action Swap in Sri Lanka

Thematic Area: Macro Trade and Economic Growth

Start Date: September 2026

Sri Lanka is one of the few major mine-affected State Parties to the Anti-Personnel Mine Ban Convention that is approaching completion. Despite competing national priorities, the national budget allocation increased from LKR 70 million in 2025 to LKR 150 million in 2026. However, as global attention shifts elsewhere, donor support has gradually declined from USD 18.5 million in 2023 to USD 17.4 million in 2024, and further to USD 14.9 million in 2025. There is a high risk of further declines in donor funds. If this occurs, the sector will require additional funding to offset the shortfall account for newly discovered contaminated areas and sustain a collective clearance rate. Failure to bridge this financing gap would slow down the programme, disrupt the economic development of the North and East, and erode the value of over USD 250 million in prior international investment, as well as future investment opportunities.