Expertise France and CSE host Stakeholder Consultation Session

Expertise France, in collaboration with the Colombo Stock Exchange (CSE), hosted a pivotal Stakeholder Consultation Session on ‘Challenges for Issuing Corporate Green Bonds in Sri Lanka’, at Galle Face Hotel, Colombo, engaging over 75 participants. 

The consultation was organised within the framework of the EU Green Recovery Facility, a four-year initiative funded by the European Union (EU) and implemented by Expertise France. The initiative aims to support Sri Lanka’s transition towards a green economy by addressing structural barriers in sustainable finance.

Green bonds have the potential to play a crucial role in mobilising capital for climate action, aligning with Sri Lanka’s net-zero commitments and Nationally Determined Contributions. However, limited issuance in the local market has revealed a range of challenges, including the need for sector-specific financing solutions and enhanced investor confidence in green financial instruments.

As part of this effort, an analysis was conducted to identify key obstacles in issuing corporate green bonds in Sri Lanka. 

Baastel Team Leader Jason Taylor presented the findings, conclusions and key recommendations of the study. The study examined the full spectrum of challenges – from identifying financial gaps in priority sectors to gauging investor interest in green financial products.  This Consultation Session provided an opportunity for the stakeholders to critically engage with the study’s recommendations and allow the facility to collect comments to tailor the recommendations.

During the consultation, EU Delegation to Sri Lanka Head of Cooperation Johann Hesse shared insights on the EU’s support for green finance initiatives. 

Environment Ministry Director Environment Planning and Economics Kumudini Vidyalankara highlighted the role of policy frameworks in supporting the issuance of green bonds. CSE Senior Vice President Commercial Punyamali Saparamadu discussed the CSE’s role in facilitating green bond listings in the market.

The EU and CSE remain committed to supporting the development of the green bond market and working with the stakeholders to drive sustainable financial solutions in Sri Lanka.