Sri Lanka Embraces Sustainable Finance at Global Sustainable Finance Conference 2025

Strategic Insights -

Sri Lanka's continued commitment to shaping a sustainable financial ecosystem in line with global standards was reaffirmed at the Global Sustainable Finance Conference (GSFC) 2025 in Karlsruhe, Germany. The event featured a distinguished delegation from Sri Lanka's leading banking and financial institutions, highlighting the country's post-crisis recovery through sustainable financial practices. The conference emphasized the crucial role of technology finance in closing the global technology gap and enabling economies to leapfrog toward high value-added growth.

Key Takeaways:

  • The conference provided a platform for international leaders, regulators, and financial sector professionals to share insights and strategies for aligning finance with sustainability goals, with a focus on closing the global technology gap.
  • Sri Lanka's participation in the conference underscored the country's commitment to shaping a sustainable financial ecosystem in line with global standards, with a focus on post-crisis recovery through sustainable financial practices.
  • The Sustainability Standards and Certification Initiative (SSCI) framework developed by the European Organisation for Sustainable Development (EOSD) empowers value-driven financial institutions to profitably drive the creation of a new sustainable economy.
  • The conference showcased how the SSCI framework can enable Central Banks in developing countries to introduce holistic sustainability in their financial sectors, leading to the achievement of national and global Sustainable Development Goals.
  • Discussions at the conference highlighted the importance of operationalising sustainability principles to support national priorities such as all-encompassing risk management, financial inclusion, and green credit flows.
  • The MSME sector was identified as a key area of focus, with MSMEs contributing over 52% of Sri Lanka's GDP and employing approximately 45% of the workforce.
  • State-owned banks and non-bank financial institutions played a significant role in the conference, demonstrating the government's resolve to embed sustainability into public financial management.
  • Sanasa Development Bank PLC and First Capital Holdings PLC have formally enrolled in the SSCI process, while People's Leasing and Finance PLC has commenced the onboarding process, reflecting growing momentum within the financial services industry.
  • Alliance Finance Company PLC was honoured with the SSCI Version 2.0 Certification Level 3, being the first South Asian financial institution to achieve this level of sustainability certification.

Statistics:

  • The MSME sector contributes over 52% of Sri Lanka's GDP.
  • The MSME sector employs approximately 45% of the workforce in Sri Lanka.
  • Sri Lanka's representation in the conference was led by a delegation from the country's leading banking and financial institutions.
  • Sanasa Development Bank PLC and First Capital Holdings PLC have enrolled in the SSCI process, committing to implement the standards and advance sustainability within their organizations.
  • People's Leasing and Finance PLC has commenced the onboarding process, reflecting growing momentum within the financial services industry.

Sources:

  • Daily Mirror Sri Lanka
  • European Organisation for Sustainable Development (EOSD)
  • Global Sustainable Finance Conference 2025
  • Sanasa Development Bank PLC
  • First Capital Holdings PLC
  • People's Leasing and Finance PLC
  • Alliance Finance Company PLC