Sustainable finance key to economic stability: Deputy Minister

• Speaking at the Serendipity Knowledge Program hosted by ADB, Dr. Harshana Suriyapperuma insists on leveraging sustainable finance methods to drive growth
• Says Sri Lanka’s 5% growth in 2024 signals effective management of reserves and exchange rate under new administration  
• Insists businesses to prioritise environmental responsibility alongside revenue generation
• Lists Green Finance Taxonomy, alignment to ESG initiatives, green deposits as common green investments available 
• Says environmental sustainability is directly correlated to continuous growth

Deputy Minister of  Finance and Planning  Dr. Harshana Suriyapperuma

By Janani Kandaramage

Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma this week stressed sustainable finance remains a key enabler of economic stability and fostering inclusive development.

Speaking at the Serendipity Knowledge Program (SKOP) hosted by the Asian Development Bank (ADB), he highlighted the need for responsible investment and financial innovation to drive long-term growth.

Dr. Suriyapperuma noted that as political and economic stability strengthens under the current Government, it is imperative to implement financial solutions that deliver swift results, whilst maintaining environmental responsibility that is conducive to sustainable growth.

“In 2024, Sri Lanka experienced a growth of 5%, indicating increasing prosperity with time. Under our administration, reserves have been effectively managed and even exchange rates are slowly stabilising. In addition, the latest IMF and debt restructuring review were successfully concluded, signifying a steady business ecosystem that ensures predictability in policy,” he highlighted.  

He opined that this predictability in policy was essential for forecasting risks and developing business models aimed at mitigating those risks, ensuring stable budget allocation and fostering a greener business ecosystem.

Discussing the Green Finance Taxonomy introduced by the CBSL in 2022, Dr. Suriyapperuma said: “This taxonomy classifies economic activities based on their environmental impact, guiding investments towards projects that support climate change mitigation, adaptation, and other green objectives.”

He also spoke of green deposit schemes, such as those introduced by DFCC Bank where funds are allocated to sustainability-focused loans. 

“These loans finance projects such as hydropower generation, waste-to-energy initiatives, and water recycling, to promote environmental sustainability,” he added.

Other measures undertaken include Environmental, Social, and Governance (ESG) integration into local business strategies, aligning operations with climate and biodiversity targets and encouraging sustainable business practices.

The Deputy Minister also emphasised on the importance of international collaborations. “Initiatives such as the CBSL partnering with the International Finance Corporation (IFC) to develop its green finance strategy, including updating the green finance taxonomy and expanding the National Financial Inclusion Strategy will improve environmental resilience, and therefore financial resilience,” he noted.

He pointed out that accelerating economic advancement requires a focus on environmental resilience, as a strong natural environment is vital for preserving the availability of resources. “This, in turn, is foundational to stable and continuous economic growth,” he said.

Elaborating on the need for economic advancement, Dr. Suriyapperuma called on industries to leverage on technology as a means of enhancing business efficiency and supporting accessibility to banking services. 

He also stressed the role of banks in supporting SMEs by enhancing the diversity of their loan options.