The Sri Lanka Banks Association (SLBA), an umbrella body of the Sri Lankan banks, is creating a joint initiative that promotes best practice in sustainable finance. The Sustainable Finance Initiative (SFI) would explore opportunities for industry alignment while building industry wide capacity in the area of environmental and social risk management. The initiative, on behalf of its member banks, would be tasked with developing recommendations, which will include proposals on capacity building and the creation of Sustainable Finance Guiding Principles that are customized for the Sri Lankan context. In line with the country’s long-term development plans as outlined in the government’s vision, the SLBA member banks will support efforts towards making Sri Lankan banking industry more globally competitive. Sustainable economic growth, environmental degradation, climate change, and resource scarcity are among the key challenges for Sri Lanka. Commitment by the SLBA member banks to set up the sustainable finance initiative is a first step in a process that will make Sri Lanka part of a growing group of emerging countries where banks and governments are creating sustainable-finance frameworks and incentives.
