Sarvodaya Development Finance PLC is giving itself a further six months to put the proceeds of its 2025 High Yield Sustainable Bond to work, pushing the allocation deadline out to 17 April 2027, EconomyNext reported on Tuesday.

The licensed finance company raised Rs 2.0 billion through the issue and had originally expected to allocate the money within 12 months. Under the bond’s framework, Rs 1.5 billion was earmarked for social financing and Rs 500 million for green financing.

The shortfall sits entirely on the green side

The social tranche has been fully disbursed. The green tranche has not: only Rs 163 million of the Rs 500 million has been allocated, leaving Rs 337 million unplaced. That puts green lending at roughly 33 per cent of target while social lending stands at 100 per cent — and it means the whole of the delay is attributable to one half of the instrument.

The company said the extra time is needed “to channel the remaining funds into eligible green projects,” and stressed that the change “relates only to the allocation timeline and does not alter the bond’s objectives, the allocation split between green and social financing, or the intended use of proceeds.”

Two things the filing does not spell out

Both follow from the company’s own published figures.

First, the original deadline has already passed. Six months back from 17 April 2027 is 17 October 2026 — three days before the extension was reported. On a 12-month allocation window, that also dates the issue to around 17 October 2025.

Second, the required pace roughly quadruples. Allocating Rs 163 million over twelve months is about Rs 13.6 million a month. Clearing the remaining Rs 337 million by April 2027 requires about Rs 56 million a month — more than four times the rate achieved so far, in half the time.

Not reported

The filing does not say why eligible green projects proved harder to find than social ones, who approved the extension, whether bondholders or the trustee were consulted, or what follows if the April 2027 date is also missed. No other verified Sri Lankan newsroom had covered the disclosure at the time of writing; Daily FT, the Daily Mirror business desk and Lanka Business Online had not filed on it.