Business

Green bonds gain traction in Sri Lanka

Published

3 years ago

2023/05/5

Thilina Walpola

Source: IFC Global Macro & Market Research, Bloomberg, Environmental Finance, Climate Bonds Initiative

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.

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Business

Financial literacy central to country’s development – CBSL Governor

Published

24 hours ago

2026/10/13

Sahan Weerasooriya

Dr. Nandalal Weerasinghe: ‘Financial literacy vital’.

By Hiran H. Senewiratne

Sri Lanka’s financial literacy rate is approximately 58 percent. Such literacy is absolutely necessary for the inclusion of people in the country’s financial system which in turn is central to overall economic development, Central Bank Governor Dr. Nandalal Weerasinghe said.

‘One needs to have knowledge and skills of a financial nature to figure in financial inclusiveness. While 86 percent of Sri Lanka’s population has access to the country’s financial system, 82 percent of the public has at least a savings account in the country’s banking system, Dr Weerasinghe said.

The Governor made these comments recently at the inauguration of Financial Literacy Month 2026 at the Central Bank’s Centre for Banking Studies, Rajagiriya.

Dr. Weerasinghe added: ‘Suitable, affordable and quality financial instruments are needed to enhance financial literacy in the country.

‘Financial information has to be accurate, risk-free and accountable, thus creating confidentiality in the financial system, which would enable the sector to reach greater heights’.

Meanwhile CBSL sources said: ‘The Literacy Month opened with the two-day ‘FinLit Expo Colombo’. The expo gives the public the opportunity to engage with institutions, better understand financial services, gain practical insights into managing their finances and learn how to protect themselves from financial fraud and scams.

‘The CBSL is leading the program in collaboration with stakeholder institutions. It forms part of the Financial Literacy Roadmap for Sri Lanka, which is implemented under the National Financial Inclusion Strategy (NFIS), the national framework for widening access to and use of formal financial services.

‘The Colombo event will be followed by six regional ‘FinLit Expos’ aimed at direct engagement with local communities. Partner institutions will also run awareness activities. Together, the events are intended to provide financial education to communities and encourage people to apply financial knowledge in everyday life.

‘A public awareness campaign on television, radio, newspapers and social media will extend the program’s reach. The program also includes digital financial literacy activities and the promotion of QR codes and other online payment methods.

‘The public and stakeholder institutions are encouraged to take part in the month’s activities under the theme, “Towards a Financially Literate Sri Lanka”.

Business

HUTCH strikes five awards as the only telco honoured at SLIM DIGIS 2.6

Published

24 hours ago

2026/10/13

Sahan Weerasooriya

HUTCH Sri Lanka strengthened its position as a leader in digital engagement by securing five accolades at SLIM Digis 2.6, emerging as one of the most recognized brands at this year’s digital excellence awards. The achievement was further highlighted by HUTCH being the only telecom operator to be recognized at the event.

Organized by the Sri Lanka Institute of Marketing (SLIM), SLIM Digis is Sri Lanka’s premier platform celebrating excellence, innovation, and outstanding achievements in the digital marketing industry. The recognition highlights HUTCH’s growing strength in digital-first, agile, and creative marketing, and its ability to respond to everyday moments, engage audiences, and deliver impactful digital campaigns.

The Gold Award for Best Use of Agile and Moment Marketing, a Silver for Best Use of Digital in a Marketing Campaign, and a Bronze for Best Performance Marketing were all awarded for “Keeping Sri Lanka Connected Through Ditwah,” HUTCH’s response to the cyclone that struck Sri Lanka in November 2025, recognised for the speed and relevance with which HUTCH kept customers better connected and informed.

HUTCH Roaming also earned two further Bronze awards for Best Use of Digital in a Marketing Campaign and Best Use of Creative Content. Bringing together AI-led storytelling, the campaign was designed around distinct customer clusters, each characterized by unique travel behaviours, needs, and perceptions, delivering relevant content for different audiences within a single overarching campaign.

“These wins are a strong reflection of how HUTCH approaches marketing today, staying close to the moments that matter to our customers and responding with speed, relevance, and creativity. Being the only telco recognised at SLIM DIGIS 2.6, and across five categories, is proof that agility and thoughtful storytelling can go hand in hand. This recognition reflects the collective efforts with our strategic partners, whose collaboration, expertise, and shared commitment brought great campaigns to life,” said Hamdhy Hassen, Chief Marketing Officer, HUTCH Sri Lanka.

Business

Fairway Colombo named Official Accommodation Partner of Manhunt International 2026

Published

24 hours ago

2026/10/13

Sahan Weerasooriya

(L-R): Gamunu Cooray, Ms. Tharushi Kulathunga, Avinga Wanigasekara, Arjuna Senanayake, and Jagath De Almeda at the signing ceremony held at Fairway Colombo.

Sri Lanka’s Smart Luxury Business Hotel to Host Delegates and Contestants from Over 40 Countries as the Island Nation Hosts Its First-Ever Global Pageant of This Scale

Fairway Colombo, a subsidiary of Fairway Holdings (Pvt) Ltd, has been appointed as the Official Accommodation Partner for Manhunt International 2026, one of the world’s most prestigious male pageants, scheduled to take place in Sri Lanka.

The event marks a historic milestone for Sri Lanka, as the country prepares to host a global pageant of this scale for the very first time. More than 40 contestants representing countries from across the world will arrive in Colombo, bringing together diverse cultures, international media attention, and a global audience — further strengthening Sri Lanka’s position as a premier destination for tourism, culture, and hospitality.

As the official accommodation partner, Fairway Colombo will welcome and host international delegates and contestants throughout their stay in Colombo, delivering the exceptional hospitality experience and personalized service that the hotel is recognized for.

A Landmark Partnership for Sri Lankan Tourism

“We are truly honored to be selected as the Official Accommodation Partner for Manhunt International 2026. This partnership is a proud moment not only for Fairway Colombo but also for Sri Lanka as a whole. Hosting an event of this global stature provides us with an opportunity to showcase our commitment to smart luxury, innovation, and authentic Sri Lankan hospitality to an international audience. We look forward to creating a memorable and seamless experience for all delegates and guests,” said Avinga Wanigasekara, General Manager of Fairway Colombo.

Strategically located in the heart of Colombo’s historic Fort district, Fairway Colombo is recognized as a Smart Luxury Business Hotel, combining modern comfort, advanced technology, and exceptional service. As part of Fairway Holdings (Pvt) Ltd, the property represents the group’s vision of delivering innovative, world-class experiences across the hospitality and leisure sectors.