Sri Lanka’s 2022 debt default, driven by unsustainable borrowing, plunged the country into an economic crisis. Compounding the challenge is its high climate vulnerability, which disrupts livelihoods and deepens economic instability. Faced with these dual crises, the urgency for innovative financial recovery strategies has never been greater.

Debt-for-climate-and-nature swaps present a promising solution to ease the financial burden while addressing climate challenges.

To read the full story visit https://development.asia/insight/transforming-debt-climate-action-driving-sri-lankas-economic-recovery

Photo credit: ADB