Colombo, Sri Lanka, August 24, 2023–To build on previous sustainable finance knowledge sharing sessions and to build further momentum, the Accelerating Sustainable Finance Through Private Sector Participation workshop was held in Sri Lanka.  The workshop was jointly organized by the Central Bank of Sri Lanka, the Sustainable Development Council, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), and the Global Green Growth Institute (GGGI). The workshop, conducted in partnership with the Luxembourg Green Exchange (LGX) and LGX Academy, aimed to enhance the capacity of financial institutions in the country. The capacity building consisted of technical knowledge sharing and understanding in several critical areas including the process of issuing thematic bonds and green financing frameworks for financial institutions. 

“Sri Lanka is embarking on a transformative journey towards a sustainable, resilient economy, bolstered by a strategic partnership between key stakeholders. In pursuit of ambitious climate goals and the effective management of environmental, social, and governance (ESG) risks, the nation is setting the stage for a paradigm shift in sustainable finance mobilization,” Sonali Senaratna Sellamuttu, GGGI’s Sri Lanka’s Country Representative said. “The roadmap for this transformation includes a Roadmap for Sustainable Finance in Sri Lanka, the Green Finance Taxonomy introduced in May 2022, and further emphasizes the development of local guidelines, operational tools, and the adoption of global standards for thematic bonds,” Ms. Sellamuttu added. 

As Sri Lanka works diligently with the International Monetary Fund (IMF) and other stakeholders to restore macroeconomic and debt sustainability, the government’s focus remains on economic reforms. This pivotal moment also presents a unique opportunity to harness innovative sustainable finance mechanisms, particularly by mobilizing the private sector towards innovative financial instruments to finance the Nationally Determinant Contributions (NDC) and the Sustainable Development Goals (SDG). Recognizing the private sector’s pivotal role in facilitating NDC and SDG investments, a targeted capacity-building workshop was conducted to equip key stakeholders with the knowledge and tools fundamental to mobilizing sustainable finance. 

The workshop was uniquely crafted for private sector stakeholders considering future thematic bond issuance and those seeking a deeper understanding of sustainable finance instruments, including ESG lending. The sessions were interactive, offering attendees a rich blend of group work, presentations, and practical ESG application considerations. 

The workshop was designed to empower private sector stakeholders considering future thematic bond issuance and those seeking a deeper understanding of sustainable finance instruments, including ESG lending. The workshop sessions were highly interactive, featuring group work, presentations, and ESG application considerations. Participants are equipped to apply their newfound knowledge practically within their respective organizations, driving forward Sri Lanka’s sustainable finance agenda. 

Building upon the momentum of the workshop and the broader sustainable finance appetite, Sri Lanka is poised to further its efforts in incorporating ESG factors into its financial sector. Going forward GGGI aims involve additional capacity-building sessions for public and private stakeholders, support the Government of Sri Lanka’s readiness to issue thematic bonds and a potential execution of a debt swap transaction, while collaborating with development partners such as UNESCAP to ensure that Sri Lanka remains at the forefront of sustainable finance innovation and mobilization in Asia. 

The panel (L to R): Ms. W A Dilrukshini, Director – Macroprudential Surveillance, Central Bank of Sri Lanka; Ms. Sushara Vidyasagara, Head of Investment Banking, Commercial Bank; Dr. Sonali Senaratna Sellamuttu, Country Representative Sri Lanka, GGGI; Ms Chamindry Saparamadu, Director General, Sustainable Development Council