How Could Decisions from the Sri Lankan Government’s 2024 Budget Affect the Country’s Climate Change?

A government budget is a financial plan outlining the estimated revenues and proposed expenditures for a specific period, typically a fiscal year. It reflects the government’s priorities, allocation of resources, and overall economic policies and gets a lot of public attention.

In a government budget, space and value can be given for investments in renewable energy by allocating funds to research, development, and implementation of renewable energy sources. This step can help reduce the reliance on fossil fuels, mitigating climate change.

The budget can also support enforcing environmental regulations and incentivize industries to adopt eco-friendly practices, curbing pollution and greenhouse gas emissions.

Allocating funds for sustainable initiatives can contribute to mitigating climate change. Conversely, inadequate funding or support for such measures may hinder progress in combating environmental challenges. Budgetary decisions impact implementing policies and programs that can either promote or impede sustainable practices, influencing the overall trajectory of climate change initiatives.

For 2024, the government budget was announced this month. Budget expenditure has been arranged at a record 6.98 billion rupees in 2024, an increase of 33% compared to 2023. “This is a budget to build the foundation of Sri Lanka’s recovery.” President Ranil Wickramasinghe quoted in the budget speech. Trying to drive the nation forward amidst the economic crisis, the forthcoming year is a critical period for Sri Lanka in political terms as well.

Since the budget is one of the primary measurements for understanding how a nation prepares its short-term plans, we tried to delve into efforts by the government toward sustainability development and climate change adaptation.

Decisions for Climate Change in the Budget 2024

1. Disaster Loans

Government agencies or financial institutions typically offer disaster loans to help individuals, businesses, or communities recover from natural or artificial disasters. These loans often give favorable terms and are designed to assist with rebuilding efforts and covering losses incurred during the disaster. 

Due to its geographical location and topography, Sri Lanka is vulnerable to climate change-induced disasters. The country faces risks such as sea-level rise, extreme weather events, and changes in precipitation patterns. Coastal areas are particularly susceptible to the impacts of rising sea levels, leading to increased risk of flooding and erosion.

Additionally, rainfall patterns may affect water availability, impacting agriculture and water resources. Sri Lanka’s economy, heavily reliant on agriculture, is sensitive to such changes. Extreme weather events like cyclones and intense rainfall can also result in landslides and flash floods, posing a threat to communities and infrastructure.

Disaster loans are significant for the Sri Lankan community in such a situation. In the past, Sri Lankan farmers had a suicidal history due to their crop damage from the unexpected extreme weather conditions. Some people lost their families’ houses and belongings to extreme weather events. So, this step is essential to build up the lives discouraged by such disasters.

In this year’s budget, the Sri Lankan government has mainly focused on addressing climate change. So, the fund from the government budget in 2024 has been allocated to addressing climate change directly through sustainable practices, renewable energy solutions, and environmental conservation practices. President Ranil Wickramasinghe commented in this decision that “Budgetary decisions impact the implementation of policies and programs that can either promote or impede sustainable practices, influencing the overall trajectory of climate change initiatives.”

2. Climate Education

Addressing climate change is a global priority, and universities are crucial. They contribute by conducting research to understand climate issues, educating future leaders on sustainable practices, and developing innovative solutions to mitigate the impact of climate change. Additionally, universities serve as hubs for collaboration, bringing together experts from various fields to tackle complex environmental challenges. 

As the Sri Lankan president mentioned at COP 27, he announced that the International Climate Change University would be established in 2024. And this will be the world’s first climate change university. So, this impacts Sri Lanka in a few ways. Establishing the International Climate Change University in Sri Lanka will be a giant step for climate change in Sri Lanka, Asia, and other areas. According to the President, the 600 acres of land beyond the Kotmale Reservoir has been allocated to establish the International Climate Change University.

3. Repairing of Small Tanks

Bodies of water, including small lakes, play a role in local climate regulation by influencing temperature and humidity. A well-maintained lake can help moderate local temperatures and create more favorable conditions for surrounding vegetation.

Repairing small lakes is one budget plan for modernizing the agriculture and fisheries industry. President mentioned that this becomes more important with the effect of climate change.  The weather patterns are irregular now with the impact of climate change.

For the agricultural and other aspects, it is essential to store water more sustainably. Small lakes contribute to local and regional water management. They act as natural reservoirs, helping regulate water flow, prevent flooding, and ensure a sustainable water supply for surrounding ecosystems and human communities. 

Small lakes can act as buffers against extreme weather events associated with climate change. They provide natural spaces that can absorb excess water during heavy rainfall, reducing the risk of floods and releasing water during dry periods, helping to maintain water availability. 

The Sri Lankan government had proposed through the 2024 budget to assign the responsibilities of repairing small tanks to the farmer organizations of the respective areas with the government’s authority and support. As mentioned, involving local communities in this project can raise awareness about environmental issues and foster a sense of responsibility. Engaged communities are more likely to implement sustainable practices, which can positively affect climate change. Here to read more on the repairing of small tanks.

4. Green Economy

A green economy is an economic system that aims to foster sustainable development while minimizing environmental impact. The primary goal is to balance economic growth, social well-being, and environmental stewardship. Key features of a green economy include resource efficiency, renewable energy, biodiversity conservation, circular economy, and social inclusivity: climate resilience and innovation and technology. Governments, businesses, and communities worldwide increasingly recognize the importance of transitioning to a green economy to address environmental challenges and promote long-term sustainability. Here for more about green development.

One of the main proposals in the 2024 government budget in Sri Lanka is establishing a green economy. “We need to create a green economy in Sri Lanka to face the future with strength. The climate resilience plan is the basis for the future vision of the sustainable development agenda.” President Ranil Wickramasinghe quoted.

According to the green economy plans in Sri Lanka, by establishing a Climate Finance Unit in the Treasury and a Climate Change Office in the President’s Office, steps are being taken to create the institutional structure that will support the implementation of Sri Lanka’s Climate Prosperity Plan.

Also, under the green economy, the Sri Lankan government plans to develop renewable energy sources in Sri Lanka, including green hydrogen, green ammonia, solar, and wind. 

The solutions for the food shortage, predicted to occur shortly in the Asian region due to climate change, have been addressed under the green economy topic. A grant from the budget has been allocated to launch a suitable program to ensure food security, supply essential food to consumers without shortage, and provide technical and other facilities required by small and medium-scale processors engaged in the food production process. 

Other than the above decisions, a few other points in the budget are indirectly affected by climate change. Allocating grants for flood control in the Galle district, solving the drinking water issues and educational development, and youth development can also positively affect climate change.

Innovation and technology development positively impact climate change by supporting the innovation of eco-friendly products in Sri Lanka.

Drawbacks

The main area the annual government budget should be attentive to is infrastructure development. This year, there are many plans and grants for infrastructure such as roads, airports, highways, etc. The green development point should occur while working on all the budget proposals. It is essential to future Sri Lanka and more sustainable budget plans.

Green development in infrastructure involves designing, planning, and implementing infrastructure projects focusing on sustainability and environmental responsibility. So, while developing infrastructure, applying the points of green development is essential. Efficiency of energy, waste management and recycling, water conservation and management, natural habitat preservation, climate resilience, green building practices, and renewable energy integration are the key aspects of green development in infrastructure.

Senior Professor Hemanthi Ranasinghe of the University of Sri Jayewardenepura commented that there was insufficient space to discuss deforestation in the budget. Reducing and controlling deforestation is a central point in green development. There should be more discussion on reducing deforestation and other sustainable development practices.

More than post-disaster plans, it would be better to have more pre-disaster plans for climate change-induced disasters. Some people are still living in areas considered riskier and more vulnerable to the impacts of disasters. If there were a proper plan for those people’s living areas and conditions, that would be more effective.

Challenges for the Government Budget Plans and Goals

In green development, initial costs for implementing green technologies and sustainable practices can be higher than traditional methods. Limited financial resources and a focus on short-term economic considerations often hinder the adoption of green development strategies.

Many individuals and businesses may lack awareness of the benefits of green development or have a limited understanding of sustainable practices. Education and awareness campaigns are crucial to overcome this challenge.

Advances in green technologies are essential for sustainable development. However, a lack of research, development, and accessibility to these technologies can slow their integration into various sectors.

Resistance to change can be challenging due to established norms, existing infrastructure, or reluctance to adopt new technologies. Overcoming inertia and fostering a mindset shift towards sustainability is crucial.

Balancing the need for infrastructure development with environmental conservation and protection of natural habitats can lead to conflict over land use. Striking a balance in meeting economic and environmental objectives is a complex challenge.

Overcoming these challenges requires a multi-faceted approach involving collaboration between government parties, businesses, communities, and international organizations and a commitment to long-term sustainable practices.

Conclusion

In summary, many topics related to climate change education, adaptation, mitigation, and resilience are discussed in the 2024 budget compared to some of the previous proposals; converting these proposals to action items would benefit the country.

However, there are some concern areas, such as the lack of space allocated for discussion on reducing deforestation and other sustainable development practices. Also, along with concessionary schemes for disaster victims, a pre-disaster planning scheme to reduce the unfavorable impacts of climate change-induced disasters would also be welcome.

-With inputs from Mihiri Saparamadhu–