EU funded Green Recovery Facility drives recognition for Lanka’s sustainable bonds

Sri Lanka’s sustainable finance sector has gained regional recognition at the Environmental Finance Sustainable Debt Awards 2026. This progress has been driven in part by the European Union funded Green Recovery Facility, implemented by Expertise France.

The Facility is a EUR 5 million initiative that aims to turn sustainability into tangible economic opportunities, driving both growth and resilience. In key areas such as sustainable energy, circular economy, climate action, and sustainable finance, the Facility helps the government and businesses identify key actions, while stimulating innovation and unlocking public and private sector investment.

In line with its Global Gateway strategy, the European Union (EU) is fostering green investment in Sri Lanka, and in this context, supports the development of the green bond market to channel private finance into climate resilient and sustainable projects.

The initiative plays a central role in strengthening Sri Lanka’s Green, Social, Sustainability and Sustainability-Linked (GSS+) bond market. It works in close collaboration with the Colombo Stock Exchange (CSE) and technical partners to align local issuances with international standards.

Sri Lanka’s regulatory environment has also been strengthened with the introduction of the GSS Bonds Regulatory Framework in 2025, further improving transparency and positioning the country more competitively in international capital markets.

At the 2026 awards, Sri Lankan financial institutions received multiple regional recognitions, underscoring their growing leadership in sustainable finance across Asia and the Pacific (APAC).

DFCC Bank was honoured with the Innovation Award for its Green Bond - Use of Proceeds in APAC, while Bank of Ceylon received the Innovation Award for its Sustainability Bond Structure in APAC. Commercial Bank of Ceylon was also recognised, securing the APAC Green Bond of the Year award in the Financial Institution category.

These recognitions come at a crucial point in Sri Lanka’s economic recovery, sending a strong signal to global investors about the country’s ability to structure credible, standards-based financial instruments.

As part of efforts to sustain this momentum, the Green Recovery Facility is rolling out a targeted capacity-building programme in early May 2026 to strengthen national coordination of GSS+ bonds in Sri Lanka.

The initiative brings together over 160 participants, including senior executives and technical professionals from financial institutions.

Dr Johann Hesse, the Head of Cooperation at the EU Delegation, noted, “When Sri Lanka develops a strong market for green and social bonds, both sides gain. Sri Lanka unlocks longer term finance for its transition, and European investors gain reliable, climate aligned opportunities in a key partner economy”.