DFCC Bank Launches Sri Lanka’s First Blue Bond to Protect Oceans

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Colombo, Oct. 1 – In a landmark step for sustainable finance, DFCC Bank has launched Sri Lanka’s first-ever Blue Bond, a Rs. 3 billion issuance dedicated to protecting marine and coastal resources.

The bond, expected to receive an ‘A(EXP)(lka)’ rating from Fitch Ratings, will fund projects including clean drinking water systems, sustainable fisheries and aquaculture, renewable ocean energy, eco-friendly coastal tourism, wastewater management, clean marine transport, and climate adaptation for coastal communities.

Aligned with the International Capital Market Association’s Green, Social and Sustainability Bond Principles and emerging Blue Bond guidelines, the issuance emphasizes transparency, measurable impact, and clearly defined use of proceeds.

Nearly 30% of Sri Lanka’s population lives in coastal areas, heavily reliant on fisheries, tourism, and maritime trade. DFCC Bank said the Blue Bond reflects a national commitment to safeguarding ecosystems and supporting communities dependent on ocean resources.

The move follows DFCC’s successful launch of Sri Lanka’s first Green Bond in 2024, extending its sustainability journey “from land to sea.”

DFCC CEO Thimal Perera called the issuance a milestone:

“Finance can change the course of a nation – and with this Blue Bond, we are showing it can also change the course of our oceans.”

With this pioneering step, Sri Lanka joins an exclusive group of nations, including Seychelles, Fiji, Ecuador, and Indonesia, that have tapped capital markets to protect marine ecosystems.

Marking its 70th anniversary, DFCC reaffirmed that economic growth and environmental stewardship can go hand in hand, positioning the Blue Bond as a model for integrating sustainability into Sri Lanka’s financial system.

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