Innovative Financing Solutions to Advance Sustainability in the Private Sector

The United Nations Development Programme (UNDP) in Sri Lanka in collaboration with the Colombo Stock Exchange (CSE), Ceylon Chamber of Commerce (CCC), United Nations Global Compact Network Sri Lanka (CNSL), and the UN Economic and Social Commission for Asia and the Pacific (UNESCAP), recently hosted a two-day workshop as part of the Sustainable Finance Week for the Private Sector in Colombo. This event was designed to address the urgent need to integrate sustainability into the strategic framework of businesses in Sri Lanka.

Speaking at the event, Azusa Kubota, Resident Representative of UNDP in Sri Lanka, emphasized the transformative power of sustainable finance, noting “This workshop is about reimagining our economies where economic prosperity aligns seamlessly with sustainability. As the business environment evolves under the influence of climate change, resource limitations, and shifting societal values, integrating sustainability into business strategy is no longer optional—it is imperative.”

The event highlighted the importance of embedding sustainability into everyday operations, which will enable Sri Lankan companies to attract ethical consumers, enhance their brand image, stay compliant with evolving regulations, and access sustainable investment opportunities.

Punyamali Saparamadu, Senior Vice President – Commercial, Colombo Stock Exchange emphasized the importance of capacity building in Environmental, Social, and Governance (ESG) frameworks commented, “As we explore the commercialization of green bonds, we have identified a significant interest among companies. Yet many lack clarity on the execution pathway. This highlights the urgent need for capacity building in the area. It is increasingly clear that companies with strong ESG frameworks not only bolster their reputation, but also effectively mitigate risks and lower their cost of capital in the long run.”

During the two-day workshop, experts from the organising committee led a series of interactive discussions designed to enhance the capacity of the private sector in understanding and implementing sustainable practices. Participants gained valuable insights into how aligning with the Sustainable Development Goals (SDGs) can unlock substantial business opportunities. They were also given the opportunity to clarify key terms and concepts related to sustainable financing and were given practical advice on integrating sustainability into business models and investment portfolios – which included case studies relevant to Sri Lankan businesses.

Underscoring the urgency of translating sustainability commitments into actionable strategies, Rathika de Silva, Executive Director, United Nations Global Compact Network Sri Lanka highlighted, “Sustainability is not a buzzword—it’s a business imperative. We find ourselves at a critical juncture in our economy, where an infusion of funds is urgently needed. Currently, we have only achieved 15% of the SDGs, leaving us with 85% still to accomplish. With just 6 or 7 years remaining, the urgency to act has never been greater.”

Additionally, the event covered sustainable financing options such as green bonds, corporate bond issuance, and sustainability disclosures. Participants gained technical expertise in Environmental, Social, and Governance (ESG) frameworks as well as Impact Measurement and Management (IMM), learning how to incorporate these into their operations and reporting. The workshop also fostered networking and partnerships, allowing attendees to build connections, explore collaborations, and share knowledge on sustainability initiatives.

Sanjaya Ariywansa, Chief Economist speaking on behalf of the Ceylon Chamber of Commerce noted, “Sri Lanka has immense potential for sustainable growth and development. However, the path to realising this potential has many challenges. The private sector as the engine of economic growth holds the key to unlocking this potential. We must empower businesses to measure and manage their environmental and social impact while simultaneously accessing the growing pool of sustainable finance.”

The Sustainable Finance Week concluded with a call for continued collaboration and partnership among the private sector, UN agencies, the UN Global Compact and financial institutions. The event laid the groundwork for long-term engagement and knowledge sharing, encouraging businesses to take proactive steps towards sustainability. As Sri Lanka continues to develop its sustainable finance landscape, the outcomes of this week will play a crucial role in shaping the future of business in the country.