ECONOMYNEXT – The European Union-funded Green Recovery Facility Project, implemented by Expertise France, is helping Sri Lanka strengthen its sustainable finance framework by putting into practice the Green Finance Taxonomy.
“This support is ultimately designed 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 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.”
Developed by the central bank and published in 2022, the Green Finance Taxonomy provides a framework for classifying environmentally sustainable economic activities across public and private sectors to guide financial flows towards green investments.
The Green Recovery Facility Project, Expertise France, is supporting the rollout of the green taxonomy following a request by the central bank governor.
The first phase focused on identifying priority areas and assessing capacity needs among stakeholders.
The second phase focused on developing 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 was conducted in May which brought together over 200 stakeholders from the central bank, licensed financial institutions, corporate sector, accreditation and certification bodies, and public sector institutions.
Reps from financial institutions at the ToT session (May 4-5)
Participants at the Capacity Building session for accreditation, certification bodies (May 21)
The sessions focused on the practical application of the taxonomy, including reporting requirements, financial product development guidelines, and the tools developed under this initiative. (Colombo/Jun9/2026)