In a significant move aimed at fostering sustainable investments in Sri Lanka, the International Finance Corporation (IFC) and the European Union (EU) have joined forces with the Commercial Bank of Ceylon (CBC) to boost green finance, aligning with the country’s pursuit of a low-carbon economy. This partnership, operating under the EU’s regional initiative ‘Accelerating Climate Smart and Inclusive Infrastructure in South Asia (ACSIIS)’, is set to assist CBC in laying the groundwork for a transition towards net zero emissions. With IFC’s expertise, CBC aims to expand its green financing portfolio, with a focus on areas such as blue finance and green SMEs.
Sanath Manatunge, Managing Director/ Chief Executive Officer of Commercial Bank, highlighted the significance of developing a robust climate transition strategy within the bank’s overarching roadmap. He expressed enthusiasm for engaging IFC’s advisory services to realize this critical initiative, emphasizing the bank’s commitment to sustainable banking practices and the imperative to grow its green portfolio while advancing towards net zero emissions.
Sri Lanka’s vulnerability to extreme weather events underscores the urgency of addressing climate change risks. The World Bank forecasts a 1.2% annual GDP loss by 2050 due to climate change impacts, making it a national priority for the country to reduce greenhouse gas emissions and increase renewable energy generation. Riccardo Puliti, IFC’s Vice President for Asia and the Pacific, affirmed IFC’s commitment to supporting Sri Lanka on its path to a net-zero future, expressing excitement about strengthening the partnership with CBC to foster a robust green finance market.
Financial institutions like CBC play a pivotal role in driving green and sustainable finance, setting an example for the industry by scaling up green finance portfolios. This initiative not only signals the importance of prioritizing climate-resilient investments but also aims to stimulate sustainable economic growth. Carmen Moreno, the Ambassador of the EU to Sri Lanka, commended the launch of this initiative, highlighting its alignment with the EU’s Global Gateway strategy. She emphasized the potential for expanded green finance to contribute to cleaner air, water, and a more sustainable future for the people of Sri Lanka.