Former Maldive’s President Nasheed:
When Sri Lanka faced its financial crisis in 2022, the IMF approved a 4‑year Extended Fund Facility after months of negotiation. Yet the Debt Sustainability Analysis (DSA) failed to account for climate shocks. With recent climate calamities, it is now impossible for Sri Lanka to stay aligned with the IMF programme.
The Climate Vulnerable Forum has long called for reforming the DSA to properly value resilience investments and natural capital, and for a reformed G20 Common Framework that includes automatic debt standstills in response to climate shocks.
