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The document introduces the Sustainable Asset Valuation (SAVi) methodology, a simulation-based tool designed to calculate environmental, social, governance, and climate risks, as well as externalities in infrastructure projects. It details the three-pronged modelling approach—system dynamics, project finance, and spatially explicit models—to provide a more comprehensive cost-benefit analysis than traditional financial valuations. The report provides sector-specific examples (energy, buildings, roads, wastewater, irrigation, and natural infrastructure) and outlines how these modules can be integrated into Indonesia's Vision 2045 (IV2045) system dynamics model to bridge top-down national strategy with bottom-up project implementation.

The report finds that SDG implementation in Sri Lanka is highly synergistic, with only 2% of direct interactions between analyzed targets being restricting. Key 'accelerators' with the highest outward influence include policy coherence, reducing corruption, and climate change capacity. Conversely, targets like drinking water and housing show the lowest outward influence due to potential trade-offs with environmental and resource management. The study emphasizes that because targets are closely intertwined, Sri Lanka requires cross-sectoral collaboration rather than siloed approaches.

The IISD database serves as a tool for estimating the financial performance of infrastructure assets by accounting for systemic costs and benefits often omitted in conventional assessments. It contains 2,057 entries across five categories: environmental externalities (1,059), social externalities (291), governance externalities (4), direct costs (192), and climate risks (511). The database covers infrastructure types including transport, energy, water management, materials management, building, mining, and nature-based infrastructures, and is used to support the SAVi simulation service and SAVi Academy training.

The SAVi assessment evaluates four restoration scenarios for South-West Beira Lake in Colombo, Sri Lanka. It finds that upgrading wastewater treatment facilities is the most cost-effective intervention, as it addresses nutrient inflow and eutrophication. The most significant economic gains are achieved by combining wastewater upgrades with dredging, which is projected to increase surrounding property values by USD 43 million and recreational spending by USD 19.5 million between 2020 and 2025.

The report evaluates four scenarios for the restoration of South-West Beira Lake in Colombo: business-as-usual (BAU), wastewater treatment upgrades, dredging of lake deposits, and a combined approach. The analysis finds that while dredging alone provides limited benefits, upgrading wastewater treatment offers the highest benefit-to-cost ratio (39.67). The combined scenario of wastewater treatment and dredging produces the greatest absolute economic gains, increasing property values by over USD 43 million and recreational spending by USD 19.5 million by 2025. The document recommends recognizing the lake as a tangible capital asset to facilitate blended financing solutions involving public authorities and private investors.

The Western Province of Sri Lanka is utilizing urban and peri-urban agriculture and forestry to enhance climate resilience, specifically through the rehabilitation of abandoned paddy lands and the intensification of home gardening. Pilot projects in Kesbewa demonstrate that these interventions can reduce flood risks by improving storm water infiltration and lower greenhouse gas emissions by reducing food transport needs. The document argues for a 'green mosaic' urban design and the alignment of local, provincial, and national policies—including the revision of the Paddy Act—to scale these low-cost adaptation strategies.

The document argues that climate compatible development is won or lost at the subnational level, where local actors face intense pressure from climate extremes but possess unique advantages in local knowledge and cross-sectoral coordination. It identifies key barriers, such as scientific uncertainty at local scales and a gap between public expectations and available resources. To overcome these, the paper recommends strategies including the cultivation of local political 'champions', the creation of 'knowledge partnerships' to translate climate science for communities, and the use of participatory planning to mobilise in-kind resources. It emphasizes that for these local successes to contribute to global transformational change, they must be 'scaled out' to other localities and 'scaled up' into national policy frameworks.

The report examines the complex relationship between the Buddhist Sangha and the peace process in Sri Lanka. It details the organizational structure of the Sangha, the influence of Sinhala Buddhist nationalism, and the emergence of politically active monks, specifically the Jathika Hela Urumaya (JHU) party. While many monks fear that a federal solution would lead to the division of the country and the betrayal of Buddhism, a minority of peace-activist monks and some high-ranking mahanayakas support a negotiated settlement. The report suggests that Norway, as a facilitator, should engage more deeply with influential monks to prevent them from becoming spoilers and to secure public support for a political solution.

The document analyzes the escalation of the Sinhalese-Tamil ethnic conflict in Sri Lanka from 1983 to 1986, focusing on the 'criminal fire'—reprisals and atrocities—committed by both government security forces and Tamil guerrillas. It argues that the conflict has evolved from social discrimination into an ethnic war where the conduct of armed forces actively reproduces the violence. The author proposes a two-step resolution process: first, the application of the Law of Armed Conflict and Human Rights Law to de-escalate military violence, followed by the use of human rights law to manage the political struggle. The report suggests international assistance from the UN, the Commonwealth, and the Red Cross, and advocates for radical reform of the Sri Lankan police and army to make them representative of both ethnic communities.