Sri Lanka’s Capital Market Gains International Recognition for GSS+ Bond Issuances at Environmental Finance’s Sustainable Debt Awards 2026

The Colombo Stock Exchange (CSE) is pleased to announce that Sri Lanka’s capital market has received international recognition for the quality and innovation of its Green, Social, Sustainability and Sustainability-Linked (GSS+) bond issuances at the 2026 Sustainable Debt Awards hosted by Environmental Finance.

This milestone reflects the continued strengthening of Sri Lanka’s sustainable finance landscape and its growing alignment with international capital markets.

This achievement builds on a sustained collaboration with the EU-funded Green Recovery Facility, implemented by Expertise France, which has supported the development and international positioning of Sri Lanka’s GSS+ bond market.

Advisory and coordination support has been provided in close collaboration with the CSE, alongside technical inputs from the contracted consultancy team Baastel led by Jason Taylor.

Since supporting the operationalisation of Sri Lanka’s Green Bond Framework in 2023, this engagement has evolved into a broader effort to develop the country’s GSS+ bond market.

Through strengthened policy alignment, market development, and stakeholder engagement, this partnership has contributed to corporate GSS+ bond issuances aligned with international standards.

Collectively, recent GSS+ bond issuances in Sri Lanka have mobilised approximately LKR 82 billion (around EUR 216 million) across green, blue, social, sustainability, and sustainability-linked instruments, financing priority sectors such as renewable energy, energy efficiency, water and coastal resilience, and inclusive social infrastructure.

These issuances have been oversubscribed, reflecting growing investor confidence in Sri Lanka’s sustainable finance framework.

This progress has been supported by the introduction of Sri Lanka’s GSS+ Bonds Regulatory Framework in 2025, aligned with international principles, further strengthening market credibility and investor confidence.

The awards recognise the following Sri Lankan institutions:

- DFCC Bank – Award for Innovation: Use of Proceeds (Green Bond, APAC)

- Bank of Ceylon – Award for Innovation: Sustainability Bond Structure (APAC)

- Commercial Bank of Ceylon – Green Bond of the Year (Financial Institution, APAC)

Thimal Perera, Director/Chief Executive Officer, DFCC Bank PLC said,

“This recognition reflects the progress Sri Lanka’s capital markets are making in aligning with international sustainable finance standards and strengthening credibility with global investors.

We are honoured to receive recognition in the area of innovation in use of proceeds, which highlights the growing ability of Sri Lankan institutions to structure financing solutions with transparency, measurable impact, and long-term relevance.

We remain grateful to the regulators, market participants, technical partners, and investors whose continued support is helping advance Sri Lanka’s sustainable finance ecosystem.”

“We are honoured to receive the Environmental Finance’s Sustainable Debt Award for Innovation – Sustainability Bond Structure (APAC) for the Bank of Ceylon’s inaugural LKR 20 billion Basel III compliant Tier 2 Sustainability Bond – the largest sustainability bond issuance in Sri Lanka and the first of its kind.

This alignment addressed both BOC's capital adequacy requirements and commitment to aligning sustainable finance with national development priorities while advancing resilient and inclusive economic growth in Sri Lanka.

As the first Sri Lankan bank to secure this prestigious global award, we wish to thank the Colombo Stock Exchange for their proactive coordination and encouragement.

We also extend our sincere appreciation to all stakeholders who partnered with us in this trailblazing endeavor.” said Mr. G. A. Jayashantha, Acting Senior Deputy General Manager/ Head of Global Markets, Bank of Ceylon.

Remarking upon the award Sanath Manatunge, Managing Director / Chief Executive Officer of Commercial Bank of Ceylon said,

“Winning the ‘Green Bond of the Year’ award is a significant milestone for Commercial Bank and a strong endorsement of our commitment to sustainable finance and responsible banking.

As the largest private bank in Sri Lanka, we recognise our responsibility to support investments that drive long-term environmental and economic resilience, particularly in the renewable energy sector.

This recognition reflects the Bank’s strategic focus on advancing sustainable financing solutions that contribute meaningfully to the country’s climate goals and broader sustainable development agenda.”

These recognitions are particularly significant in the context of Sri Lanka’s ongoing economic recovery and debt restructuring process.

As the country works to restore macroeconomic stability and rebuild investor confidence, the ability of Sri Lankan financial institutions to successfully issue GSS+ bonds aligned with rigorous international standards sends a strong signal to global capital markets.

Building on this momentum, ongoing efforts are focused on strengthening the market ecosystem through targeted capacity building and the development of a national coordination mechanism for GSS+ bonds.

This is expected to support further de-risking of issuances, attract foreign and institutional investors, and expand the pipeline of investment-ready instruments.

These international recognitions mark an important milestone for Sri Lanka’s capital market and reflect the growing maturity of our sustainable finance ecosystem.

The successful issuance and strong investor response to GSS+ bonds demonstrate that Sri Lankan institutions are capable of aligning with global best practices while mobilising capital towards environmentally and socially impactful investments.

“At the Colombo Stock Exchange, we remain committed to fostering a robust and credible sustainable debt market through product innovation, regulatory development, stakeholder engagement, and international collaboration.

As Sri Lanka continues its economic recovery journey, sustainable finance will play a critical role in attracting long-term investment, supporting resilience, and positioning the country as an emerging destination for responsible capital in the region.” said Rajeeva Bandaranaike, Chief Executive Officer, Colombo Stock Exchange.

These achievements underscore the CSE’s continued focus on product innovation, issuer engagement, and market facilitation, while reinforcing Sri Lanka’s positioning as a credible and emerging destination for sustainable debt investment in the region.