FINANCIAL CHRONICLE – A capacity-building initiative funded by the European Union is underway in Sri Lanka, aimed at enhancing national coordination for Green, Social, Sustainability, and Sustainability-Linked (GSS+) bonds. This program is part of a €200,000 project managed by Expertise France in partnership with the Securities and Exchange Commission of Sri Lanka (SEC), the Colombo Stock Exchange (CSE), the Ministry of Finance, and the central bank.
Dr. Johann Hesse, Head of Cooperation at the EU Delegation, emphasized the mutual benefits of establishing a robust market for green and social bonds in Sri Lanka. He noted that this development would not only provide long-term financing for the country’s transition but also present European investors with dependable, climate-focused investment opportunities within a vital partner economy.
The initiative has attracted over 160 participants, including top executives and technical experts from various financial institutions. It features a high-level C-suite session alongside a two-day Training of Trainers program designed to delve into bond structuring, issuance methodologies, and effective investor engagement strategies. The program is anticipated to have a multiplier effect, ultimately benefiting more than 300 professionals in the sector.
The Green Recovery Facility, which amounts to €5 million, assists both the government and businesses in pinpointing essential actions in sustainable energy, circular economy practices, climate actions, and sustainable finance initiatives. The EU is actively promoting green investment in Sri Lanka as part of its Global Gateway strategy, focusing on developing the green bond market to attract private investments for climate-resilient and sustainable projects.
This initiative has contributed to the enhancement of market frameworks, the improvement of institutional capacities, and the building of investor confidence in Sri Lanka’s sustainable finance ecosystem. It plays a pivotal role in advancing the country’s GSS+ bond market by collaborating with the CSE and other technical partners to ensure local issuances meet international standards.
According to the EU Delegation to Sri Lanka, recent GSS+ bond issuances have successfully raised approximately LKR 85 billion (around €186 million), targeting key sectors such as renewable energy, energy efficiency, water and coastal resilience, and inclusive social infrastructure. The oversubscription of several of these issuances indicates a growing demand in the market.
Furthermore, Sri Lanka’s regulatory framework has been bolstered with the introduction of the GSS Bonds Regulatory Framework in 2025, which enhances transparency and positions the country more competitively within international capital markets.
At the Environmental Finance Sustainable Debt Awards 2026, Sri Lanka’s sustainable finance sector received notable regional accolades. DFCC Bank was honored with the Innovation Award for its Green Bond – Use of Proceeds in the Asia-Pacific region, while Bank of Ceylon won the Innovation Award for its Sustainability Bond Structure. Additionally, Commercial Bank was recognized as the APAC Green Bond of the Year in the Financial Institution category. (Colombo/May 7/2026)
