SL can become a regional leader in sustainable finance
View(s):With potential issuers interested in GSS+ Bonds, Sri Lanka is poised to become a regional leader in sustainable finance, Tushara Jayaratne, Deputy Director General, The Securities and Exchange Commission of Sri Lanka (SEC), said. The SEC launched the Regulatory Framework for issuing and trading a suite of Environment, Social and Governance (ESG) related-Bond products at the Colombo Stock Exchange (CSE), allowing issuers to raise funds in the capital market through Green, Blue, Social and Sustainability Linked (GSS+) Bonds.
With recent SEC approval, issuers can focus on two additional products: Social and Sustainability Linked Bonds. The SEC and ADB technical assistance enabled the launch of GSS+ Bonds in March 2025.
“The sustainable finance market experienced a significant expansion from US$140 billion pre-2016 to $1,239 billion in 2021, a 9x growth. The market experienced a moderate contraction in 2022, followed by a slight recovery in 2023 and 2024. Product diversification was dominated by Green Bonds, with Social Bonds emerging more prominently around 2019-2020, Sustainability-linked Bonds solidifying their presence, and Transition Bonds representing the smallest segment. The period between 2019 and 2021 saw the most dramatic growth, likely influenced by the pandemic’s focus on social welfare and green recovery initiatives. Green Bonds consistently dominated the market, with Sustainable Bond issuances reaching $1.1 trillion in 2024. Advanced markets demonstrated greater volume and diversity, while Emerging Markets and supranational issuers contributed relatively equal shares but with different compositions,” Mr. Jayaratne explained.
GSS+ bonds provide a way for issuers to diversify funding sources, improve their environmental, social, and governance (ESG) profiles, and attract a wider investor base. They offer competitive financial returns while contributing to impactful projects addressing global challenges. Issuers benefit from diversifying funding sources, enhancing their reputation as responsible entities, and reducing interest rates. Investors benefit from comparable financial returns while contributing to the country’s economic and sustainable development, Mr. Jayaratne noted.
The Sustainable Bond Principles and Standards require issuers to adhere to strict reporting requirements, providing transparency for investment management. Investors also feel a sense of self-fulfillment by contributing to projects that save the environment and support social development.
“Continued innovation and adherence to international standards are crucial for realising the full potential of GSS+ products,” Mr. Jayaratne noted.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!