Sri Lanka has received the mandatory second party opinion for its green bond framework, a key requirement for issuing the bonds, Bloomberg reported.
Speaking at a forum organized by the Asian Development Bank (ADB) in Colombo, Finance Ministry Additional Director General Visakha Amarasekera confirmed the receipt of this opinion, with a formal announcement expected after cabinet approval.
The framework will enable Sri Lanka to issue green bonds when the country is ready to return to capital markets. As per the IMF loan program, the earliest projected return is in 2027, with a borrowing limit of $1.5 billion to bridge the external financing gap.
Last July, Sri Lanka’s central bank partnered with the World Bank’s International Finance Corporation (IFC) to enhance its sustainable finance strategy. The IFC-backed initiative aims to update the green finance taxonomy introduced in 2022 and strengthen sustainable finance policies.
The Central Bank has been working on a sustainable finance roadmap since 2019 and issued guidelines encouraging commercial banks to raise funds through green bonds and invest in sustainable projects.