The European Union-funded Green Recovery Facility Project, implemented by Expertise France, is supporting the rollout of Sri Lanka’s Green Finance Taxonomy after a request from the Central Bank governor, EconomyNext reported.
The taxonomy — developed by the Central Bank of Sri Lanka and published in 2022 — sets out a framework for classifying environmentally sustainable economic activities across public and private sectors and is intended to channel financial flows towards green investments. Putting it into practice is meant to “improve access to sustainable finance, promote the development of green financial products, and strengthen the identification of environmentally sustainable investments,” the EU Delegation in Sri Lanka said.
The project is being delivered in two phases. The first identified priority areas and assessed capacity needs among stakeholders. The second has focused on building practical tools, including reporting guidelines, sector-specific guidance and a screening tool to support application of the taxonomy.
A series of capacity-building and awareness sessions held in May brought together more than 200 stakeholders from the Central Bank, licensed financial institutions, the corporate sector, accreditation and certification bodies and public-sector institutions. The sessions covered the practical application of the taxonomy, including reporting requirements, financial-product development guidelines and the new screening tool.
“The implementation of the Green Finance Taxonomy marks an important milestone in strengthening transparency, institutional capacity, and Sri Lanka’s transition towards a sustainable financial system,” the EU Delegation said.
The taxonomy rollout sits alongside Sri Lanka’s Rs. 85 billion green bond market, the Sampath Bank green bond initiative and broader sustainable-finance signalling at recent investor forums.
