MMCA Sri Lanka Extends Rotation 1 of ‘Encounters’ – The Island
The Central Bank of Sri Lanka launched the Sri Lanka Green Finance Taxonomy at the Central Bank’s John Exter International Conference Hall on May 6, 2022. The Sri Lanka Green Finance Taxonomy is a classification system that defines and categorizes environmentally sustainable economic activities. , and is a key action item outlined in Sri Lanka’s Sustainable Finance Roadmap introduced by the Central Bank in 2019. The taxonomy has been prepared in line with international best practice, while aligning with the local context , it should therefore enable financial market players to raise funds at low cost for green activities in domestic and foreign markets.
Sri Lanka’s green finance taxonomy would be applicable to all domestic and overseas market players offering financial products (such as bank loans, debt securities, portfolio management and investment funds), large businesses, as well as national and local government agencies. It can also be used as a reference by industrial planning authorities and has served as a basis for local governments to support green industries covering a range of economic activities such as forestry and logging, agriculture, manufacturing, electricity generation, transmission and distribution, gas. , steam supply and air conditioning, water supply, sewerage and waste management.
Construction, Transportation and Warehousing, Financial Services and Tourism and Leisure. Sri Lanka’s Green Finance Taxonomy was developed with technical and financial assistance from the International Finance Corporation (IFC), and the process was facilitated by the Sustainable Banking and Finance Network (SBFN) and Support Program IFC Green Bonds Technical Report (GB-TAP). A panel of international technical experts with the assistance of local experts, namely Dr. Thusitha Sugathapala from University of Moratuwa and Dr. Madurika Nanayakkara from University of Kelaniya and Central Bank officials contributed to the elaboration of the taxonomy. Drafting the taxonomy involved an extensive consultation process with multiple stakeholders, including various ministries, financial institutions, financial sector associations, other financial sector regulators and professional service provider firms.
The launch of the Sri Lanka Green Finance Taxonomy was attended by Ms. Lisa Kaestner, IFC Country Manager for Sri Lanka and Maldives and IFC officials, Secretaries of Ministries and Senior Officials of Government Institutions, Experts international and local representatives, representatives of international institutions and partner agencies, representatives of financial institutions and officials of the Central Bank. Delivering the keynote address of the launch, Dr. P Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, highlighted the importance of promoting and developing a holistic strategy to embed sustainability in the country’s financial system, particularly in the context of the current economic situation. challenges facing the country and during the recovery in the aftermath of the COVID-19 pandemic. The Governor also underscored that Sri Lanka’s Green Finance Taxonomy would be an essential tool to guide financial institutions, investors, corporates and green bond issuers in the transition to a low carbon economy. , resilient to climate change and efficient in the use of resources.
The keynote was followed by a hybrid session to provide an overview of the taxonomy of green finance in Sri Lanka and a virtual panel discussion on “accelerating green finance in Sri Lanka with the taxonomy of green finance”. The session on taxonomy was provided by Wei Yuan from IFC, Dr Thusitha Sugathapala and Bolu Wang and Bridget Boulle, international experts who contributed to the development of the taxonomy. The virtual roundtable was moderated by Rong Zhang, Global Coordinator of IFC’s SBFN, and focused on how the taxonomy can help financial institutions expand green finance opportunities. Dr. Ma Jun, Chair of China’s Green Finance Committee and Co-Chair of the G20 Sustainable Finance Task Force, Pushkala Lakshmi Ratan, IFC Senior Industry Specialist, Sean Kidney of Climate Bond Initiative and Chaoni Huang, Head of Sustainable Capital Markets APAC, BNP Paribas contributed to the roundtable.
Sri Lanka’s green finance taxonomy can be accessed via the following link: https://www.cbsl.gov.lk/sl-green-finance-taxonomy 3 Selected photographs 4