Colombo, Sri Lanka, April 30, 2025 – The Sri Lanka Prime Minister’s Office, Ministry of Environment and the Global Green Growth Institute (GGGI) jointly organized the event titled “Sri Lanka Climate Finance Awareness Session: Advancing Sustainable Finance and Carbon Market for Climate Action,” which aimed to deepen the understanding of sustainable finance instruments and emerging carbon market opportunities under Article 6 of the Paris Agreement, reinforcing Sri Lanka’s ambition to mobilize innovative climate finance. 

The event, held in the esteemed presence of Honorable Prime Minister Dr. Harini Amarasuriya, brought together over 55 senior representatives from nearly 20 ministries and institutions, including the Central Bank of Sri Lanka. GGGI highlighted fundamental financial instruments to boost Sri Lanka’s access to international climate finance, such as green bonds, debt-for-nature swap, and Article 6-aligned carbon markets. 

“Climate finance is no longer supplementary—it is essential for countries like Sri Lanka to achieve our national climate goals. We have developed and updated comprehensive environmental frameworks to confront the escalating threat of climate change, which continues to impact lives, livelihoods, and our national trajectory. With a solid policy foundation, strong political will, and institutional capacity in place, what we now urgently need is the financial architecture to match our ambition and unlock the full potential of climate action. We must leverage the full spectrum of international climate finance instruments.” Hon. Dr. Harini Amarasuriya stated, emphasizing Sri Lanka’s commitment to contribute to achieving global climate goals. 

The event addressed several critical areas of Sri Lanka’s climate finance journey, including the Sustainable Finance Roadmap and the Green Finance Taxonomy—both introduced by the Central Bank of Sri Lanka, with the taxonomy representing a major milestone of the roadmap. Building on this foundation, the Sri Lanka Sovereign Green Bond Framework was developed under the leadership of the Ministry of Finance. The discussions also highlighted the draft Article 6 Carbon Market Strategy, currently being spearheaded by the Ministry of Environment. In addition, the session explored sustainable finance tools such as green, social, and blue bonds, as well as debt-for-nature swaps, emphasizing the convergence of these instruments to mobilize international capital. The potential of leveraging Article 6 carbon markets for additional project financing via international markets was also a key focus. Overall, the event showcased a growing array of opportunities aimed at strengthening climate action in Sri Lanka. 

“Sri Lanka’s Green Finance Taxonomy lays a strong foundation for aligning investments with sustainability goals, but now is the time to move beyond frameworks and focus on implementation. Building robust financial regulatory systems that actively facilitate sustainable investments is critical to ensuring that climate ambition translates into real economic transformation,” shared Mrs. W. A. Dilrukshini, Assistant Governor of the Central Bank of Sri Lanka 

“GGGI technical assistance in Sri Lanka keeps advancing various climate finance initiatives. Overall, this event allows the collective commitment to strengthening Sri Lanka’s sustainable finance ecosystem and enhancing its positioning in global carbon markets. We firmly believe that empowering senior decision makers with the right knowledge and tools is essential for translating Sri Lanka’s bold climate ambitions into bankable, scalable actions on the ground,” added Dr. Sonali Senaratna Sellamuttu, GGGI Sri Lanka Country Representative.  

GGGI will continue to support the Government of Sri Lanka in strengthening its access to international climate finance through several key initiatives. Under its Global Trust Fund on Sustainable Finance Instruments, funded by the Government of the Grand Duchy of Luxembourg, GGGI will assist private financial institutions in Sri Lanka in issuing green and other thematic bonds to mobilize new private capital. Additionally, through a project funded under its Carbon Transaction Facility, GGGI will support the Ministry of Environment by providing capacity building for the adoption of an Article 6 strategy and assisting in the development of a pipeline of carbon market-ready projects. To further complement these efforts, a new Green Climate Fund (GCF) Readiness Project will be launched together with the Ministry of Environment, to enhance Sri Lanka’s competitive readiness to mobilize international climate finance, including at the provincial level.