BOC leads historical breakthrough in Sri Lanka's financial markets

BANK of Ceylon's inaugural Basel III-compliant Tier II Listed Sustainability Bond issue, the largest sustainability bond issuance ever undertaken in Sri Lanka, was oversubscribed and closed on the opening day, 22 December.

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The issue was the maiden sustainability bond launched by a state-owned bank.BOC Chairman Kavinda de Zoysa said: “With a legacy of trust and a vision for the future, BOC is a nation-building institution, committed to powering Sri Lanka’s path toward economic revival, self-sufficiency, and global competitiveness. This landmark issuance, the largest sustainability bond issuance in Sri Lanka’s financial market to date, represents a transformative chapter in BOC’s history. We are deeply grateful for the enthusiastic participation of our investors in our sustainability journey to support a stronger and more resilient nation.”

The successful issuance comes at a time when sustainable finance has assumed growing importance in economic recovery strategies worldwide. Across both developing and advanced economies, sustainability bonds have become a key channel for directing long-term capital toward productive investment amid tighter fiscal conditions, rising climate risks, and the need to restore growth. For Sri Lanka, rebuilding after a severe economic crisis and repeated climate disruptions, this form of financing carries particular relevance.

Global issuance of green, social, and sustainability bonds has expanded steadily over the past decade. Data from the Climate Bonds Initiative show that annual labelled Bond issuance has exceeded one trillion dollars in recent years, reflecting strong investor appetite for instruments linked to environmental resilience and social development.