Business
Green bonds gain traction in Sri Lanka
By Securities and Exchange Commission of Sri Lanka
(Continued from Yesterday)
Qualification Criteria for Green Bonds
The International Capital Market Association’s (ICMA) Green Bond Principles (GBP) and the Climate Bonds Initiative’s (CBI) Climate Bond Standards (CBS) help to determine whether a bond qualifies as green or not. Usually, green bonds must undergo a third party verification/certification to establish that the proceeds are funding projects that generate environmental benefits. The four Green Bonds Principles that define a green bond relate to:
Use of proceeds: the issuer should declare the eligible green project categories it intends to support. It should also provide a clear definition of the environmental benefits connected to the project(s) financed by the proceeds.
Process for project evaluation and selection: the issuer should outline the investment decision making process it follows to determine the eligibility of individual investments using the green bond’s proceeds.
Management of proceeds: the proceeds should be moved to a sub portfolio or otherwise attested to by a formal internal process that should be disclosed.Reporting: the issuer should report at least annually on the investments made from the proceeds, detailing wherever possible the environmental benefits accrued with quantitative/qualitative indicators.
Green Bond Issuances by the Emerging and Developing Economy Segment
Emerging Market and Developing EMDE Green Bonds Issued by Non
(EMDE) Green Bond Issuances by Sector financial corporates, 2021
Cumulative Emerging Market Green Bond Issuances From 2012-2021 ($mn)
Total Return Performance of Global Green Bonds vs. Global Aggregates
Benefits of Issuing Green Bonds
- Benefits for issuers can include:
- Improve investor diversification
- Enhance issuer reputation
- Provide an additional source of sustainable financing
- Increase alignment regarding the durability of instruments and the project lifecycle
- Attract strong investor demand, which can lead to high oversubscription and pricing benefits
- Can facilitate the establishment of public private partnerships that might accelerate the pace of green investment and lead to the adoption of new technologies.
Benefits for investors can include:
- Comparable financial returns with the addition of environmental and/or social benefits
- Satisfy ESG requirements for sustainable investment mandates
- Contribute to national climate adaptation, food security, public health, energy supply, amongst others
- Enable direct investment in the ‘greening’ of brown sectors and social impact activities
- Increased transparency and accountability on the use and management of proceeds, becoming an additional risk management tool
- Green bonds can help mitigate climate change-related risks in the portfolio due to changing policies such as carbon taxation which could lead to stranded assets. Instead, a green bond invests in climate-friendly assets, such as green buildings, renewable energy, that over time bear a lower credit risk.
Potential for Introducing Green Financing Initiatives in Sri Lanka
Presently, more corporate bodies are interested in moving towards green projects/initiatives in order to ensure sustainable development in their businesses while ensuring the protection of the environment and wellbeing of the society. Green Bonds will broad base investment opportunities available for investors and provide an avenue for the companies who are interested in engaging in green projects. This would offer investment opportunities to groups (both local and foreign) who are interested in investing in green projects which would benefit the overall Capital Market.
In year 2022, the Central Bank of Sri Lanka (CBSL) launched a green taxonomy in partnership with the International Finance Corporation (IFC) that defines and categorizes economic activities that are environmentally sustainable, and would aide in providing a holistic strategy to integrate sustainability into the country’s financial system.
The Colombo Stock Exchange (CSE) is already registered under the Sustainable Stock Exchanges (SSE) initiative and is currently working on ESG related initiatives under the guidance of the Securities and Exchange Commission of Sri Lanka (SEC). The SSE initiative provides a peer to peer learning platform for exploring how exchanges in collaboration with investors, regulators, and companies can encourage sustainable investment and enhance corporate transparency, and performance on ESG.
Steps Taken by the SEC for Introducing Green Bonds and Facilitating Sustainable Finance Initiatives
The introduction of Green Bonds to the Sri Lankan Capital Market would enable listed entities to raise capital for Green projects adhering to international principles applicable. This would not only expand the supply side but also open up avenue for getting much needed foreign inflows to the country from foreign funds.
Moreover, in June 2022 to enhance the awareness building initiatives in relation to ESG, a MOU was signed between the SEC, CSE and the Chartered Financial Analysts (CFA) Society. The MOU broadly intended to establish a collaborative relationship to promote awareness of ESG among Sri Lankan investors to enhance investor protection, encourage capital market practitioners to introduce ESG into their investment research and valuation process to keep abreast with challenging global trends and ensure that the professional standards and integrity are maintained in the Sri Lankan capital market.
In August 2022, to promote ESG reporting by listed companies, the SEC, CSE and the Institute of Chartered Accountants of Sri Lanka (ICASL) entered in to a Memorandum of Understanding (MOU) which broadly covered areas on building awareness on integrated reporting, corporate governance, sustainability and any other related areas for the benefit of corporates and the users of financial statements/corporate reports.
In addition the SEC developed a policy and regulatory framework governing Green Bonds in consultation with Technical Experts from the Asian Development Bank (ADB) and the CSE and in April 2023, the SEC Commission approved rules for issuing Green Bonds.
Presently, the CSE under the guidance of the SEC is completing the groundwork for launching a green index. A green index would help investors assess and integrate sustainable financing considerations in their investment process and portfolio.
Business
Hour of reckoning comes for SL’s power sector
By Ifham Nizam
A long-delayed reckoning in Sri Lanka’s power sector is finally beginning to take shape—driven less by choice and more by necessity.
At a time when the country’s fragile economic recovery hinges on stability, the electricity sector—long plagued by inefficiency, political interference, and costly dependence on imported fuel—has re-emerged as both a risk and an opportunity.
It is within this context that The Institution of Engineers, Sri Lanka will host a timely and potentially consequential forum on April 2 at the Wimalasurendra Auditorium, focusing on a “Pragmatic Approach to Electricity Sector Reforms in Sri Lanka and the Way Forward.”
This is not just another technical discussion. It is, in many respects, a reality check.
The keynote address by Eng. Pubudu Niroshan—who stood at the centre of recent reform efforts as Director General of the Power Sector Reforms Secretariat—comes at a moment when the gap between policy ambition and execution has become impossible to ignore.
For over three decades, Sri Lanka has spoken the language of reform. Yet, time and again, progress has been derailed by institutional resistance, political hesitation, and an entrenched reluctance to dismantle inefficient structures.
The result is a sector that continues to bleed financially while passing the burden onto consumers and the broader economy.
High electricity tariffs, supply vulnerabilities, and operational inefficiencies are no longer isolated technical issues—they are macroeconomic threats. Industries struggle to remain competitive, investors remain cautious, and households continue to bear rising costs. The over-reliance on imported fossil fuels has only deepened this vulnerability, exposing the country to global price shocks and geopolitical disruptions.
The economic crisis of 2022 briefly forced a shift in thinking. Under severe fiscal pressure, reform was no longer optional. The passage of the Sri Lanka Electricity Act, No. 36 of 2024 was seen as a breakthrough—an acknowledgment that structural change could no longer be postponed.
But legislation alone does not transform systems.
What has followed is a more grounded, outcome-driven approach—one that attempts to move beyond policy rhetoric. Within a relatively short span, the first phase of restructuring has been pushed through, including the repeal of the decades-old CEB Act, No. 17 of 1969, and the unbundling of the monolithic utility into six state-owned entities.
This is, by any measure, a significant structural shift.
Yet, the real test lies ahead.
Unbundling without genuine market discipline risks becoming another cosmetic exercise.
The promise of a competitive National Electricity Market—long discussed but never realized—will depend heavily on regulatory strength, transparency, and political consistency. Without these, the same inefficiencies could simply be replicated across multiple entities.
Moreover, reform cannot succeed in isolation.
Sri Lanka’s energy transition must be anchored in a broader economic strategy—one that aligns power sector reforms with industrial growth, environmental sustainability, and investment policy.
The proposed “Energy Transition Act,” now under consideration, will be a critical piece of this puzzle. If executed with clarity and discipline, it could provide the legal backbone for a coherent and forward-looking energy framework.
The reference to an Integrated Economic Development Framework (IEDF) in the 2026 Budget underscores this necessity. Energy is not a standalone sector—it is the foundation upon which economic recovery will either stand or falter.
What makes this moment different is the absence of alternatives.
Sri Lanka can no longer afford half-measures or delayed decisions. The cost of inaction is too high, and the margin for error too narrow. Reform, in this sense, is no longer a policy preference—it is an economic imperative.
The upcoming forum at The Institution of Engineers, Sri Lanka is therefore more than a professEng. Pubudu Niroshanional gathering. It is a critical platform where technical expertise must confront political reality, and where long-standing assumptions must be challenged.
For years, Sri Lanka’s electricity sector has been caught in a cycle of discussion without delivery. The shift toward a pragmatic approach signals an understanding that outcomes—not intentions—will define success.
The question now is whether that realization will finally translate into sustained, irreversible change.
Because this time, failure is not just an option—it is a risk the country simply cannot afford.
Business
Dialog introduces Samsung Galaxy S26 Series with AI-powered camera and 5G Connectivity
Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, announced the availability of the Samsung Galaxy S26 Series in Sri Lanka through its retail and digital channels, bringing Samsung’s latest flagship smartphone lineup to local consumers. The series includes the Galaxy S26, Galaxy S26+, and Galaxy S26 Ultra, combining advanced AI-powered capabilities, premium design and next-generation connectivity for everyday mobile use, with customers able to experience the power of Dialog 5G Ultra on the devices.
The Samsung Galaxy S26 Series introduces an AI-powered camera system featuring a 200MP AI-enhanced rear camera with improved low-light performance, advanced zoom and intelligent editing tools for capturing and refining content directly on the device. The lineup also includes Galaxy AI capabilities, a privacy display that limits viewing angles to protect on-screen information, and steady video functionality for smoother and more stable video recording.
The Galaxy S26 Series features Dynamic AMOLED displays across the lineup, including a 6.3-inch Galaxy S26, 6.7-inch Galaxy S26+, and 6.9-inch Galaxy S26 Ultra, supporting smooth performance for streaming, gaming and everyday productivity. The devices are available with 12GB RAM and storage options of 256GB or 512GB, while the Galaxy S26 Ultra also offers a 16GB RAM variant with up to 1TB storage for users requiring additional capacity.
Business
Ideal Motors celebrates gala ‘Excellence Awards’ honouring outstanding performance
The Mahindra Ideal Excellence Awards ceremony, a grand celebration to recognize dealers and other stakeholders of Ideal Motors, was held at the Wave n’ Lake Banquet Hall & Restaurant in Welisara recently.
The event was graced by the presence of special guests including Nalin Welgama, Founder and Chairman Ideal Motors, Dilani Yatawaka, Group Managing Director/CEO Ideal Motors, Nimisha Welgama, Director Legal and Corporate Affairs Ideal Motors, Sachin Arolkar, Head International Operations, Auto Division Mahindra & Mahindra India. Senthil Selvaraju, Head International Operations and Customer Service Automotive Division Mahindra & Mahindra India, Sujeeth Jayant, Country Head Mahindra & Mahindra India and Shitam Kundu, Head Domestic Services Mahindra & Mahindra India.
Also, in attendance from Ideal Motors were Kasun Fernando, General Manager Commercial Vehicle Sales Division, Sameera Bamunuarachchi, Deputy General Manager Spare Parts, Logistics & Inventory and Prasanna Manamperi, Deputy General Manager After Seles Service.
The Excellence Awards ceremony honoured the top sales dealers at the provincial and national levels. Recipients were presented with awards, certificates of merit, and cash prizes in recognition of their achievements. The three best national‑level sales dealers from the various categories were further rewarded with an opportunity to visit Bangkok, Thailand. In addition, special recognition was extended to banks and financial institutions that partner with Ideal Motors.
Speaking at the event, Nalin Welgama Ideal Motors Founder and Chairman said, “When we began our journey with Mahindra in 2009, the previous company had sold 300 vehicles in the country, of which nearly 150 had various defects. At that time our journey began by engaging with the parent company in India and repairing those vehicles free of charge. That commitment has brought us to where we are today. As we believe, our journey truly begins after the sale. We are dedicated to strengthening our customers, and in doing so, strengthening ourselves. That is how we transformed the after‑sales service experience.”
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