Sri Lanka is preparing to apply to the Loss and Damage Response Fund under the United Nations Framework Convention on Climate Change (UNFCCC) to seek compensation for damage caused by the recent cyclone.
Damage assessments are currently underway, and the government has begun bilateral discussions related to the claim. The issue was also discussed at the recent United Nations Environment Conference held in Nairobi, Kenya.
Environment Minister Dhammika Patabendi confirmed that a 10-member committee has been appointed to oversee the application process. The government will also consult international experts before submitting the claim.
The committee includes the Secretary to the Ministry of Environment; the Director General of the Department of Wildlife Conservation; the Chairman of the State Timber Corporation; the Director of Biodiversity at the Ministry of Environment; the Director of Climate Change; the Director of Environmental Planning and Economics; the Conservator of Forests in charge of Biodiversity and Watershed Conservation at the Department of Forests; and the Director General of Planning at the Ministry of Environment, among others.
Earlier this week, the Secretariat of the Loss and Damage Response Fund announced that the submission window for the first call for funding requests has opened. Applications can be submitted from December 15, 2025, to June 15, 2026.
The Loss and Damage Response Fund is a UN-backed financing mechanism aimed at supporting developing countries facing irreversible impacts of climate change, including extreme weather events, sea-level rise, and displacement. The fund provides grants and concessional loans to address both economic and non-economic losses—such as loss of life and trauma—that cannot be managed through adaptation measures alone.
However, concerns have been raised about the fund’s current design. Climate activist Harjeet Singh, founding director of the Satta Sampada Climate Foundation and a long-time campaigner on loss and damage, said Sri Lanka faces several critical challenges in the application process.
“Sri Lanka is facing a crisis, but the fund’s current design prioritizes process over urgency,” Singh said.
First, he warned about the requirement to submit detailed projections of disaster impacts. Under the Barbados Implementation Methodology (BIM), countries must present comprehensive funding proposals focused on long-term resilience and co-benefits. While important in principle, Singh argued that these requirements could force Sri Lanka to frame an ongoing humanitarian emergency as a conventional development project.
Second, Singh noted that the fund’s direct budget support mechanism is not yet fully operational, which could delay Sri Lanka’s application and require funds to be channelled through intermediaries such as the World Bank or UN agencies.
Finally, he stressed the need to avoid any additional debt. “Since the country is already in a debt crisis, this application should clearly be grant-based,” Singh said.
