July 04, Colombo (LNW): The Asian Development Bank (ADB) has urged Sri Lanka to intensify its growth efforts while tackling climate change challenges, emphasising the potential of green bonds to fulfil the country’s financial needs.
Public sector funding alone is insufficient for this task, necessitating the mobilisation of private finance through the capital market.
“The sustainable bond market is crucial for attracting private investment in climate mitigation and adaptation, which Sri Lanka desperately needs. This presents a significant opportunity for the nation,” stated ADB Country Director Takafumi Kadono.
Promoting the development of a sustainable capital market is a key aspect of the ADB’s initiatives in Sri Lanka to foster sustainable recovery, build resilience, and encourage inclusive growth.
Kadono commended the efforts of the Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) in promoting green and sustainable market yields but emphasised that further progress is necessary.
Speaking at the ‘Towards a Greener Economy’ forum in Colombo, Kadono announced the ADB’s commitment to supporting pilot issuances of sustainable bonds in collaboration with the SEC and CSE.
He highlighted that green bonds could play a pivotal role in addressing climate change and driving sustainable development.
“This initiative can help Sri Lanka navigate its economic crisis, set a strong growth trajectory, and build the resilience needed for the future,” Kadono remarked.
The ADB estimates that developing Asia will require approximately US$ 1.7 trillion annually from 2016 to 2030 to achieve its economic growth targets while addressing climate change challenges.
