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Climate Change
MDF’s climate-related investments aligned with Sri Lanka’s Nationally Determined Contributions (NDCs) and National Adaptation Plan. In 2025, MDF signed 19 climate-relevant partnerships.
Private sector investment in climate-relevant business models reached USD2.5 million (AUD3.8 million) in 2025, with firms investing more than USD4.2 for every dollar spent by MDF, reflecting growing commercial interest in adaptation and mitigation solutions.
In Agriculture
MDF’s interventions promoted inputs that strengthened resilience while improving productivity. This included improved fertiliser; locally developed hybrid chilli seeds resistant to pests and diseases, exotic vegetable seeds suited to water-efficient protected agriculture, and mechanisation, finance and irrigation models in water‑scarce regions. AI‑enabled pest identification and digital advisory services helped farmers respond to climate‑driven pest outbreaks, while other partnerships promoted safe and efficient agrochemical practices. In coffee, MDF supported climate‑smart drying facilities to maintain bean quality under unpredictable weather and is piloting agroforestry and precision agriculture to build longer‑term resilience.
Results from MDF’s fertiliser interventions show farmers reducing their application of generic fertiliser by 20 per cent and increasing paddy yields to 2,367 kg/acre (in Yala 2025). These changes are contributing to Sri Lanka’s NDC 2035 targets of improving fertiliser use efficiency by 15 per cent and increasing paddy productivity to 2,266 kg/acre.
In Tourism
MDF demonstrated how carbon accounting and resource‑efficientoperations can strengthen both environmental and commercial performance. Building on early successes, MDF identified a gap in sustainability services and built national capacity to deliver carbon audits and multi‑metric assessments at scale. This enables tourism businesses, especially smaller firms, to improve energy and water efficiency, reduce emissions and operating costs, and align with market standards, whilst modernising management systems, which helps improve service quality.
These interventions directly support Sri Lanka’s Tourism NDCs by providing support for sustainability certification and certification readiness programs, as well as expanding climate aware practices and services across the sector through capacity building and training.
Climate Change Quick Fact
In 2025, Sri Lanka launched its first Climate-Smart Agriculture Investment Plan and National Climate Finance Strategy to reduce climate vulnerability, which costs Sri Lanka approximately 2% of its GDP annually.
Sri Lanka submitted its ambitious third Nationally Determined Contribution (NDC), committing to net-zero greenhouse gas emissions by 2050.
Gender Equality, Disability and Social Inclusion
Gender equality, disability and social inclusion remained central to MDF’s approach in 2025, and capability was strengthened, including do-no-harm assessments and structured engagement with OPDs.
Over 80 per cent of interventions in 2025 contributed to women’s economic empowerment. MDF deepened commercially viable inclusion models in protected agriculture, mango and specialty coffee. A new partnership with Roseland in specialty coffee is creating pathways for women to participate more equitably.
Disability inclusion advanced through universal design in fertiliser distribution, expanded distribution networks to reach mobility-constrained farmers and promotion of drones and digital tools to reduce labour barriers.
In tourism, partnerships improved women’s retention and leadership pathways. Collaborations with Intrepid, Fort Hotels and SLTA focused on improving women’s skills, visibility and retention in the workforce. OPD engagement deepened, including collaboration with the Employers’ Federation of Ceylon and accessibility audits. Disability inclusion efforts have benefitted over 140 people to date.
