The Strategic Briefing on the Delivery of Green Financial Services to Businesses brought together experts and stakeholders to discuss sustainable finance in Sri Lanka. The event underscored the urgency of aligning financial systems with environmental goals to address the global climate crisis and build a resilient economy. Key discussions highlighted the role of financial institutions in bridging funding gaps and promoting green economic growth.
Mr. Dilhan C. Fernando, Chairman of Biodiversity Sri Lanka (BSL), emphasised the severe climate risks outlined during COP29, including the slim chances of limiting global warming to 1.5°C. He called for immediate financial investments in developing nations like Sri Lanka to mitigate climate impacts. BSL’s collaboration with the EU-funded Switch Asia project was commended as a benchmark for advancing circular economy solutions. The involvement of the Central Bank Governor was highlighted as critical for fostering a green financial ecosystem to support the nation’s green transition.
Dr. Johann H. Hesse, Head of Cooperation of the EU Delegation to Sri Lanka and the Maldives, shared insights into the EU’s Green Deal, a policy package aimed at climate neutrality by 2050. He celebrated milestones such as the launch of Sri Lanka’s first green bond and stressed addressing barriers like information gaps and limited private investment mechanisms. He also highlighted ongoing EU support for circular economy initiatives, including plastics management under the Switch Asia Plastics Project, and reiterated the importance of partnerships to strengthen Sri Lanka’s financial sector.
Delivering the keynote address, Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, focused on the global significance of addressing climate risks. He pointed out the inadequacy of taxpayer-funded initiatives and emphasised the need for innovative financial instruments to attract private sector investments. He outlined the Central Bank’s progress in sustainable finance, such as the 2019 roadmap and the 2022 green finance taxonomy. Despite challenges posed by the pandemic, the Central Bank enhanced sector capacity through training and international collaborations. A new roadmap is being developed, integrating social and environmental considerations to broaden sustainable finance frameworks.
Dr. Weerasinghe also stressed the importance of adaptation finance, alongside mitigation efforts, to address growing climate risks. He called for innovative financial products and increased collaboration to close gaps in Sri Lanka’s sustainable finance progress. The Governor reaffirmed the Central Bank’s commitment to fostering sustainability and enabling a cultural shift toward green development.
The event included a presentation by Mr. Errol Abeyratne, BSL Green Finance Specialist, on the EU Switch Asia Plastics project, which promotes a circular economy through green financing and clean tech solutions. Key achievements included feasibility studies, outreach to financial institutions, and capacity-building programmes for SMEs. Future efforts will focus on increasing institutional engagement and leveraging philanthropic investments for climate risk financing.
Mr. Anushka Wijesinha, Co-Founder of the Center for a Smart Future, presented findings from the Green Finance Maturity Assessment, which identified gaps in operationalising green finance, such as limited internal policies and inadequate risk assessment mechanisms. The study emphasised integrating environmental risk assessments into financial processes to unlock green growth opportunities.
During the open discussion, stakeholders addressed barriers like high costs of green finance, the potential of green bonds, and the role of fiscal and regulatory incentives. Dr. Weerasinghe highlighted the need for institutional coordination to align national policies with international climate goals and foster innovative financing mechanisms.
The briefing concluded with a call for multi-stakeholder collaboration to overcome barriers, advance green finance, and accelerate Sri Lanka’s transition to a sustainable economy. By fostering dialogue, stakeholders can drive ecosystem restoration, green economic growth, and resilience in the face of climate challenges.
