Issuers of COVID-19 bonds have been in the spotlight in the sustainable bond markets in recent weeks. The focus has been on what COVID-19 bonds are, who can issue them and how they can be aligned with current market standards, such as the Social Bond Principles. However, a number of investors have come out with statements on COVID-19 bonds in the last few weeks. This is a welcome and positive development as it highlights key aspects of the sustainable finance market: engagement and transparency. Meanwhile, speaking at a webinar organized by the Sri Lanka Banks’ Association recently, Manjula de Silva, Secretary-General/CEO of Ceylon Chamber of Commerce also recommended for Sri Lanka to explore COVID Bond to raise financing for SME sector green recovery. “We have seen that many organizations as well as countries have come up with something called COVID bonds. Which are considered within the social bond category and which is also broadly falling within the sustainable finance market and these COVID bonds have helped to raise finance for relief measures; such as providing support for SMEs. So this is an area that our Central Bank can look at because this may be a way of raising finance at a relatively lower cost,” de Silva stated. De Silva also spoke on sustainable insurance in Sri Lanka and underscored the importance of fast-tracking the implementation of technical assistance program for National Natural Disaster Insurance Scheme (NNDIS) from the InsuResilience Solutions Fund. He also noted that Ceylon Chamber of Commerce, UNEP-DTU and Sanasa Insurance Group are exploring a joint initiative to structure “Affordable Resilience Insurance for MSMEs in Sri Lanka”.
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