Lankan banking and finance sector reaffirms commitment to sustainable growth

Sri Lankan delegation at the GSFC 2025 

• Participates at Global Sustainable Finance Conference in Germany

 The Global Sustainable Finance Conference (GSFC) 2025, held on 25–26 September 2025 in Karlsruhe, Germany, provided a pivotal platform for advancing the global dialogue on sustainable finance and inclusive economic growth. 

It emphasised the crucial role of technology finance in closing the global technology gap and enabling economies to leapfrog toward high value-added growth. The event convened international leaders, regulators, and financial sector professionals to share insights and strategies for aligning finance with sustainability goals.

Representing Sri Lanka at the conference was a distinguished delegation from the country’s leading banking and financial institutions. 

People’s Bank, one of the largest state-owned banks in Sri Lanka, was represented by Deputy General Manager – Commercial Credit Thushari Hewawasam, Deputy General Manager – Risk Management P.G.A.C. Perera, and Assistant General Manager – Retail Banking W.N.T. Perera. Sanasa Development Bank PLC, a licenced specialised commercial bank focused on community and cooperative banking, was represented by Executive Director/CEO Kapila Ariyaratne. People’s Leasing and Finance PLC, a Government-majority-owned non-banking financial institution offering leasing and financing solutions, was represented by CEO/GM Sanjeewa Bandaranayake and Chairman Prof. Ajantha Samarakoon.

First Capital Holdings PLC, a listed full-service investment institution, operating as a primary dealer, corporate finance advisor, wealth manager and stockbroker, participated with Managing Director/CEO Dilshan Wirasekara, Janashakthi Group Managing Director/Group CEO Ramesh Schaffter, and Vice President- Corporate Finance Sashi Schaffter. 

Alliance Finance Company PLC, a pioneering non-banking financial institution providing a range of financing and investment solutions, was represented by Romani de Silva. Their collective participation underscored Sri Lanka’s continued commitment to shaping a sustainable financial ecosystem in line with global standards.

For Sri Lanka, this year’s conference was particularly significant as the country continues to deepen its post-crisis recovery through sustainable financial practices. The conference reaffirmed that the financial sector’s role is pivotal in steering the country toward a green and socially responsible economy, emphasising that sustainable finance is no longer optional but fundamental to economic stability and resilience.

The conference provided a unique opportunity for participants to deepen their understanding of the world’s most comprehensive Sustainability Standards and Certification Initiative (SSCI), a globally recognised framework developed by the European Organisation for Sustainable Development (EOSD). 

The SSCI framework empowers value-driven financial institutions to profitably drive the creation of a new sustainable economy, offering the tools and metrics to embed sustainability into their strategies, governance, and risk management systems.

The holistic approach to sustainable banking and finance showcased at GSFC 2025 inspired the Sri Lankan participants to further strengthen national efforts in implementing sustainable finance practices. Discussions at the conference demonstrated how the SSCI framework could enable the Central Banks in developing countries to introduce true and holistic sustainability in their financial sectors, which would lead to the achievement of national and global Sustainable Development Goals. This will unlock new and sustainability-centric business opportunities for banks and non-bank financial institutions and stimulate the economy in an unprecedented manner. 

A key area of focus at GSFC 2025 was how financial institutions can operationalise sustainability principles to support national priorities such as all-encompassing risk management, financial inclusion, and green credit flows whilst emphasising the essential need to drive high value addition. These efforts are essential for revitalising key economic sectors while addressing pressing issues such as inflation, unemployment, and ensuring financial stability in a sustainable manner.

Another priority theme was strengthening and modernising the MSME sector to also improve value addition. MSMEs now contribute over 52% of Sri Lanka’s GDP and employ approximately 45% of the workforce. This underscores the need to improve access to finance, encourage formalisation, boost digital skills, foster innovation, value addition and support women-led and rural MSMEs as part of a green, inclusive recovery.

Importantly, state-owned banks and non-bank financial institutions (NBFIs) were well represented at this year’s GSFC 2025, demonstrating the government’s resolve to embed sustainability into public financial management. Their active engagement reflects a growing national consensus that sustainable finance is key to building a resilient, low-carbon economy.

As a result of their participation, Sanasa Development Bank PLC and First Capital Holdings PLC have formally enrolled in the SSCI process, pledging to implement the standards and advance sustainability within their organisations. People’s Leasing and Finance PLC had already commenced the onboarding process last year, reflecting growing momentum within the financial services industry. These developments mark significant progress in aligning Sri Lanka’s financial system with global standards of sustainability and responsible banking.

At the conference, Alliance Finance Company PLC was also honoured with the SSCI Version 2.0 Certification Level 3, being the first South Asian Financial Institution to achieve this level of sustainability certification underscoring its exemplary performance in sustainability integration. AFC has played a vital role in motivating the Sri Lankan delegation to participate in the GSFC 2025, thereby strengthening the nation’s representation on the global stage.

The Sri Lankan delegation, now formed as a Core Group, established to spearhead the implementation of the SSCI in the country, remains inspired by the holistic approach to sustainable banking and finance showcased in Germany. 

The group is committed to playing a pivotal role in driving Sri Lanka’s green and socially sustainable economic recovery. Furthermore, the EOSD’s RISE program is expected to provide Sri Lanka with access to advanced cutting-edge technical expertise and facilitate the mobilisation and deployment of financial resources needed to accelerate sustainable economic transformation. Such a transformation will create new employment opportunities, stimulate economic growth, diversify the economy, and strengthen the country’s resilience while advancing the key milestones outlined in the CBSL’s Roadmap for Sustainable Finance in Sri Lanka.

The Sri Lankan delegation’s collective presence at GSFC 2025 underscores the country’s growing commitment to sustainable finance and its determination to align with international standards. Their participation, guided by visionary leadership and reinforced by the support of both state-owned and private sector financial institutions, reflects a shared ambition to build a greener, fairer, and more inclusive economy for future generations.