Optimising sustainable finance in agriculture via Public-Private Partnerships

Key stakeholders’ transformative dialogue on strengthening partnerships and unlocking private investment in sustainable and resilient agri-food systems

SLYCAN Trust and the Sustainable Development Council of Sri Lanka (SDCSL) recently co-hosted a thematic dialogue focused on Public-Private Partnerships (PPPs) and blended finance to scale up sustainable and climate-resilient investment in Sri Lanka’s agriculture sector.

The event brought together key stakeholders from Government agencies, financial institutions, industry associations, development partners, and other stakeholder groups to explore innovative approaches to mobilise resources for climate-friendly and resilient agri-food systems.

Sustainable Development Council Director General Chamindri Saparamadu underscored the critical need for sustainable investment opportunities in Sri Lanka’s agriculture sector, emphasising the gap between policy goals and implementation.

Saparamadu highlighted the importance of partnerships and resources to drive successful policy execution, stating: We are committed to exploring sustainable finance solutions, including blended finance, to address market failures and attract private investments in the agri-food sector. There remains a critical gap between our policy goals and targets and their implementation, including mobilising important partnerships and resources that are crucial for their successful implementation.”

SLYCAN Trust Director – Research & Knowledge Management Dennis Mombauer on stressed the role of the private sector in mobilising resources at scale to address climate change and promote green growth.

“Partnerships between the public and private sector as well as public-private-people partnerships can act as catalysts to unlock investment as well as other means of implementation, such as technology. We need to transform our financial systems and identify innovative financial instruments for sustainability and resilience building,” said Mombauer. He highlighted that this need for transformation was increasingly being recognised at the global level as well, including in the context of the multilateral climate negotiations.

In his keynote address, Senior Advisor to the President on Climate Change Ruwan Wijewardene focused on Sri Lanka’s commitment to sustainable agriculture and climate action.

“Today’s dialogue offers a unique opportunity to collectively brainstorm priorities and modalities for blended finance instruments tailored to our agricultural sector’s needs. By harnessing the expertise and resources of diverse stakeholders, we can co-create solutions that drive inclusive and sustainable growth. This dialogue provides a platform to explore policy direction that incentivises private sector engagement while safeguarding the interests of all stakeholders,” said Wijewardene.

The dialogue focused on identifying bankable projects for sustainable investment and establishing a pipeline of such projects to attract private and public finance in the agri-food sector. Furthermore, participants engaged in discussions around the available resources and opportunities for establishing a blended finance facility, with technical inputs provided by SLYCAN Trust Senior Technical Expert Happy Khambule and representatives from the Ceylon Chamber of Commerce, the banking sector, non-banking financial institutions, and the Department of Development Finance.

The event highlighted the importance of collaborative efforts in addressing climate change and other challenges facing Sri Lanka’s agriculture sector while emphasising on the potential role of blended finance in driving inclusive, sustainable, and resilient growth while safeguarding stakeholder interests.

In her closing remarks, SDCSL Director General Saparamadu emphasized the importance of addressing issues relating to policy inconsistencies and agriculture modernization while working in parallel towards developing sustainable financing mechanisms in the agri-food sector.