This Climate Public Expenditure and Institutional Review (CPEIR) was commissioned by the Department of National Budget of the Ministry of Finance, Planning and Economic Development, Government of Sri Lanka, and developed by the UNDP Climate Finance Network (CFN), with support from the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) Climate Action for a Resilient Asia (CARA) programme. The review was undertaken to assess and strengthen the alignment of public expenditure with national climate priorities and commitments, and to generate evidence to inform climate responsive planning and budgeting in Sri Lanka.

The CPEIR examines how Sri Lanka’s public expenditure aligns with its climate commitments over the ten-year period from 2016 to 2025. It analyses both recurrent and capital expenditure across operational and development budgets at the national level, while also assessing the policy and institutional arrangements governing climate action across key sectors.

The report is intended to serve policymakers, budget planners, and development partners as a practical tool for strengthening the integration of climate priorities into public finance management. It aims to support improved alignment between budgets and climate objectives, enhance the targeting of domestic and international climate finance, and lay the foundation for the establishment of a systematic Climate Budget Tagging (CBT) system in Sri Lanka.