European Union and CSE Ring Market Opening Bell to Mark Three Years of Sustainable Finance Partnership
Colombo, Sri Lanka, 14 August 2026: The Colombo Stock Exchange (CSE), together with the European Union (EU) celebrated their longstanding partnership through a special Market Opening Ceremony held at the CSE trading floor today. The ceremony recognised the progress achieved through the EU-funded Green Recovery Facility, implemented by Expertise France, in supporting the development of Sri Lanka's sustainable finance ecosystem and advancing the country's Green, Social, Sustainability and Sustainability-Linked (GSS+) bond market.
The Green Recovery Facility has worked in partnership with the CSE and state institutions since 2023 to strengthen the enabling environment for sustainable finance in Sri Lanka. Through technical assistance, stakeholder engagement, capacity-building initiatives, and support for institutional coordination, the partnership has contributed to the growth and increasing international recognition of Sri Lanka's sustainable capital market.
Dr. Johann Hesse, Head of Cooperation of the Delegation of the European Union to Sri Lanka and the Maldives, officiated the ceremony alongside Mr. Rajeeva Bandaranaike, Chief Executive Officer of the Colombo Stock Exchange, and Ms. Shayani Weeresinghe, Activity Lead of Expertise France.
"Ringing this bell together with the Colombo Stock Exchange marks three years of partnership between the EU-funded Green Recovery Facility and the CSE. This collaboration has helped strengthen Sri Lanka's sustainable bond market and raise its visibility among international investors. By supporting sustainable finance and mobilising investment for a greener economy, this partnership reflects the objectives of the EU's Global Gateway strategy: to build trusted connections and generate transformational impact." said Dr. Johann Hesse at the ceremony.
From assessment to market results
Since 2023, the Facility's work with the CSE has moved through two phases. Phase I benchmarked Sri Lanka's regulatory and market environment against international best practices. Phase II rolled out stakeholder consultations, mapped domestic and international platforms, and developed recommendations for a national coordination mechanism for GSS+ instruments.
Sri Lanka has mobilised approximately LKR 82 billion (around EUR 216 million) through GSS+ bond issuances, representing close to 40% of all corporate debt capital raised in the country during 2025. Proceeds have financed renewable energy, energy efficiency, water and coastal resilience, and inclusive social infrastructure, with several issuances oversubscribed. The Facility also supported the development of Sri Lanka's National Guidelines for Eco-Industrial Parks, providing a framework to channel similar green infrastructure investment to Sri Lanka in the future. Subsequent to the initial Green Bonds regulatory framework and listing guidelines in 2023, the GSS+ Bonds Regulatory Framework in 2025 further strengthened transparency and Sri Lanka's competitive position in international capital markets.
Behind Sri Lanka's award-winning year
At the 2026 Environmental Finance Sustainable Debt Awards, three Sri Lankan institutions took Asia-Pacific honours: DFCC Bank PLC received the Innovation Award for its Green Bond – Use of Proceeds; Bank of Ceylon received the Innovation Award for its Sustainability Bond structure; and Commercial Bank of Ceylon PLC was named APAC Green Bond of the Year in the Financial Institution category. All three were first-time nominees from the same market – an unprecedented result for Sri Lanka. The Facility also supported a nomination for the Colombo Stock Exchange itself, for Exchange of the Year, recognising CSE's own role in enabling this market.
The EU-funded Green Recovery Facility worked directly with all three institutions, providing technical support through the nomination and application process itself, alongside broader capacity-building on GSS+ bond structuring and issuance. Presenting Sri Lanka's sustainable finance achievements to an international audience was a deliberate objective of the EU's support – and the awards have translated domestic progress into credibility with global investors.
Building the institutions to sustain it
Alongside the market work, a EUR 200,000 component under the Facility supports the national coordination mechanism for advancing GSS+ bond market in Sri Lanka with a working group representing the Ministry of Finance, Planning and Economic Development, the Central Bank of Sri Lanka, the Securities and Exchange Commission of Sri Lanka (SEC), and CSE. In 2026 this included a C-Suite session for Executives and a two-day Training of Trainers programme on bond structuring, issuance processes and investor engagement, convening more than 160 senior executives and technical professionals. Dedicated capacity-building has also been delivered for issuers with a focus on financial institutions and private sector, external verifiers, investors and government institutions bridging the gap between environmental and climate and finance streams.
"Three years ago, this market didn't exist. Today it is raising billions, earning international recognition, and proving resilient even as interest rates rise. This is not the story of a single transaction — it is market architecture and ecosystem building, and it is exactly what Global Gateway partnerships are designed to achieve," said Shayani Weeresinghe, Activity Lead/Sustainable Business Specialist, Expertise France
What comes next
The next phase of Sri Lanka's sustainable finance development moves beyond individual issuances towards an institutionalised framework capable of sustaining market credibility, investor confidence and a credible pipeline of investment-ready opportunities. The recommended national coordination mechanism, validated with government institutions, private sector and financial institutions, technical agencies and regulators and development, is intended to anchor that transition.
The Market Opening Ceremony underscored the collective commitment of government institutions, regulators, market participants, development partners, and international stakeholders to further strengthening Sri Lanka's sustainable finance ecosystem and mobilising investment in support of the country's green economic transition.
Expertise France, 2026