Sri Lanka companies get Opportunities to Raise Debt Capital via Sustainable Bonds
July 19, Colombo (LNW): The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), in collaboration with the Asian Development Bank (ADB), recently hosted an issuer forum titled “Towards a Greener Horizon: Unlocking Opportunities through Sustainability Bonds” in Colombo.
The forum aimed to raise awareness and build capacity among stakeholders, including government authorities, state-owned enterprises, potential issuers, investment banks, corporate finance advisors, verification/assurance providers, rating agencies, and others, to establish a sustainable bond ecosystem in Sri Lanka.
In his opening remarks, M Faizal Salieh, Chairman of the SEC, emphasized the challenge of quickly integrating these bonds and attracting ESG-conscious foreign investors, considering Sri Lanka’s default sovereign rating hurdle.
He stressed the importance of building a local ESG-conscious investor base and called for stakeholders to collaborate to initiate issuances.
Salieh also noted that expanding green finance instruments and fostering cooperation between investors, issuers, and regulators could accelerate the transition to a sustainable and resilient financial system.
. Chinthaka Mendis, Director General of the SEC, elaborated on this, highlighting the potential of sustainable bonds to alleviate government budget pressures and promote inclusive national participation.
He cited Thailand as an example, where sustainable products in the capital market have supported development sectors such as renewable energy, sustainable transport, water management, and waste management post-COVID-19.
Takafumi Kadono, Country Director of the ADB, spoke on promoting sustainable capital market development as a key component of sustainable recovery, resilience building, and inclusive growth in Sri Lanka.
He shared ADB’s experience, successful case studies, and resources available to support sustainable bond issuances in the country.
Rajeeva Bandaranaike, Chief Executive Officer of the CSE, highlighted the critical juncture at which Sri Lanka’s capital market currently stands.
He emphasized the need for action and pathways for sustainable finance through Green, Social, and Sustainable Bonds. Bandaranaike also pointed out the global shift towards environmental sustainability in supply chains and the necessity for Sri Lanka to adopt these environmental policies to maintain its competitive edge in exports.
He stressed that fostering a sustainable financial ecosystem would enable local businesses to access sustainable capital, enhance resilience to climate risks, and support a greener future.
The forum included several presentations providing a comprehensive overview of opportunities in sustainable finance.
These presentations covered the global overview of green bonds, the latest developments, lessons learned in developing sustainable finance ecosystems, technicalities and intricacies in issuing Green, Social, and Sustainable (GSS) Bonds, the CSE regulatory framework for Sustainable Bonds, and DFCC Bank PLC’s experience in raising a green bond.
Overall, the forum aimed to catalyze action and create pathways for sustainable finance in Sri Lanka, aligning the country’s financial markets with global sustainability trends and practices.
