Financing the Future of Sri Lanka: An interview with DFCC Bank
To mark the upcoming 5th anniversary of the LGX Academy, we sat down with past participant DFFC Bank to hear about the role the LGX Academy has planned its sustainable finance journey.
Speaking on the experience of the Sri-Lanka based bank and the role that the LGX Academy played in helping his team bring Sri Lanka's first ever green bond to the market in 2024, we met with Prins Perera, DFCC Bank's Senior Vice President of Treasury, Wholesale & Investment Banking.
In 2022, I joined DFCC Bank and currently lead three key verticals — Treasury, Corporate Banking and Investment Banking. It has been a dynamic role that has allowed me to bring in a more integrated, customer centric and solutions-driven approach by connecting these functions.
I have also been able to champion areas I am deeply passionate about — particularly renewable energy and sustainable finance — which are not only vital for the future of banking but critical to Sri Lanka’s national priorities and long-term prosperity.
Established in 1955 as the country’s first development bank under an Act of Parliament — through a visionary collaboration between the Government of Sri Lanka and the World Bank — DFCC Bank was tasked with an ambitious national mandate:
To accelerate industrialisation and economic development across the island
In 1956, DFCC Bank became the first bank to be listed on the Colombo Stock Exchange (then the Colombo Brokers Association), playing a pivotal role in shaping the nation’s capital market infrastructure.
Over the years, the Bank has remained a catalyst for progress — pioneering access to finance in key economic sectors, empowering businesses of all sizes, and uplifting communities through purpose-driven financial solutions.
In 2024, we issued Sri Lanka’s first-ever green bond on the Colombo Stock Exchange before pursuing a dual-listing on the Luxembourg Stock Exchange (LuxSE) and its the Luxembourg Green Exchange (LGX) in early 2025 — a landmark achievement that further reinforced our legacy in sustainable innovation.
While we are proud of our strong development finance legacy, today, DFCC Bank is a fully-fledged commercial bank offering a comprehensive suite of financial services across retail, SME, corporate, and investment banking.
Our focus is anchored in customer centricity, digital transformation, and financial inclusion, with a clear aspiration to become the easiest bank to work with in Sri Lanka. We are committed to delivering accessible, responsive, and forward-looking banking experiences that adapt to the evolving needs of our customers.
Our founding vision — to drive national development — remains deeply embedded in our strategy. Today, it is enriched by a progressive, sustainability-led agenda focused on creating long-term value for people, businesses and the nation.
Through innovation, inclusion, and impact, DFCC Bank continues to empower Sri Lankans and contribute meaningfully to the country’s economic and environmental resilience.
Our vision is to be the country’s leading enabler of sustainable finance — not just through green lending but by mobilising capital, expertise and partnerships to support the nation’s long-term environmental and social objectives.
This vision is underpinned by our strategic goal of achieving carbon neutrality by 2030, and a recognised leadership in financing renewable energy.
DFCC Bank continues to drive systemic change in Sri Lanka’s financial sector through impactful, responsible, and inclusive initiatives that contribute meaningfully to a greener, more resilient national economy.
In the 1990s, DFCC Bank financed Sri Lanka’s first private sector grid-connected mini-hydro power project, setting the foundation for renewable energy finance in the country.
We subsequently supported Sri Lanka’s first large-scale wind, solar, and waste-to-energy projects, reinforcing our commitment to clean energy transition.
In 2020, DFCC Bank unveiled a 10-year Sustainability Strategy with a bold ambition — to become the Bank for Green Finance by 2030.
Another milestone achievement came in 2023, when DFCC Bank became the first Sri Lankan entity accredited by the Green Climate Fund (GCF). This journey reflects our unwavering focus on building a resilient, inclusive, and sustainable financial ecosystem for Sri Lanka.
It was a transformative step in expanding the Bank’s capacity to mobilise capital for Sri Lanka’s sustainable development through local and international capital markets.
The training, conducted in October 2023 by LuxSE's LGX Academy experts, UNESCAP and GGGI, equipped DFCC Bank with the technical know-how to structure, issue, and market thematic bonds aligned with global best practices.
It was incredibly interesting to learn more about green, social and sustainability bond frameworks, ICMA's principles, CBI's standards, second party opinions and the role of blended finance.
This knowledge enabled DFCC Bank to take the lead in bringing innovative, climate-aligned instruments to Sri Lanka’s financial landscape.
The training accelerated a key objective within DFCC Bank’s Sustainability Strategy (2020–2030) — to diversify sources of sustainable finance and lead the local capital market in green instruments.
The overwhelming investor response to Sri Lanka’s first green bond validated the appetite for sustainability-focused investments and reaffirmed DFCC Bank’s role as a national enabler of green finance.
Previously reliant on international credit lines and internal funding, DFCC Bank has now successfully positioned capital market funding as a new strategic channel for green finance mobilisation.
This is a significant step in deepening Sri Lanka’s sustainable financial architecture.
We are currently developing a robust Environmental, Social and Governance (ESG) framework that will guide the next phase of our sustainability agenda, with the objective of mobilising capital for a broader spectrum of impactful initiatives. This includes targeted support for SMEs and underserved communities which will drive inclusive economic growth across Sri Lanka.
As part of this next chapter, DFCC Bank also aims to strengthen the competitiveness of Sri Lankan exporters by helping them understand and adopt ESG principles.
By equipping businesses — particularly SMEs — with the knowledge and tools they need to meet evolving global standards, we hope to enable greater access to international markets, including the European Union, where ESG compliance is increasingly a prerequisite for trade.
This strategy reflects DFCC Bank’s broader ambition to serve not only as a financial intermediary, but as a national enabler of sustainability-led development and resilience.
As a first mover in Sri Lanka’s green finance space, DFCC Bank recommends aligning Green Bond Frameworks with international standards such as the ICMA Green Bond Principles to ensure transparency and credibility.
Investors and issuers alike should view green bonds as critical to advancing all countries' national agendas — creating jobs, reducing emissions, enhancing energy independence, and building a resilient economy.
We are proud to lead this movement and invite all stakeholders to join in shaping a greener, more inclusive Sri Lanka.
Speaking on the experience of the Sri-Lanka based bank and the role that the LGX Academy played in helping his team bring Sri Lanka's first ever green bond to the market in 2024, we met with Prins Perera, DFCC Bank's Senior Vice President of Treasury, Wholesale & Investment Banking.
Could you please introduce yourself and your role at DFCC Bank?
I have been part of Sri Lanka’s banking industry for over 30 years, witnessing the evolution of the sector across decades of transformation.In 2022, I joined DFCC Bank and currently lead three key verticals — Treasury, Corporate Banking and Investment Banking. It has been a dynamic role that has allowed me to bring in a more integrated, customer centric and solutions-driven approach by connecting these functions.
I have also been able to champion areas I am deeply passionate about — particularly renewable energy and sustainable finance — which are not only vital for the future of banking but critical to Sri Lanka’s national priorities and long-term prosperity.
Could you describe DFCC Bank to us?
DFCC Bank is one of Sri Lanka’s most respected financial institutions, with a heritage spanning over 70 years.Established in 1955 as the country’s first development bank under an Act of Parliament — through a visionary collaboration between the Government of Sri Lanka and the World Bank — DFCC Bank was tasked with an ambitious national mandate:
To accelerate industrialisation and economic development across the island
In 1956, DFCC Bank became the first bank to be listed on the Colombo Stock Exchange (then the Colombo Brokers Association), playing a pivotal role in shaping the nation’s capital market infrastructure.
Over the years, the Bank has remained a catalyst for progress — pioneering access to finance in key economic sectors, empowering businesses of all sizes, and uplifting communities through purpose-driven financial solutions.
In 2024, we issued Sri Lanka’s first-ever green bond on the Colombo Stock Exchange before pursuing a dual-listing on the Luxembourg Stock Exchange (LuxSE) and its the Luxembourg Green Exchange (LGX) in early 2025 — a landmark achievement that further reinforced our legacy in sustainable innovation.
While we are proud of our strong development finance legacy, today, DFCC Bank is a fully-fledged commercial bank offering a comprehensive suite of financial services across retail, SME, corporate, and investment banking.
Our focus is anchored in customer centricity, digital transformation, and financial inclusion, with a clear aspiration to become the easiest bank to work with in Sri Lanka. We are committed to delivering accessible, responsive, and forward-looking banking experiences that adapt to the evolving needs of our customers.
Our founding vision — to drive national development — remains deeply embedded in our strategy. Today, it is enriched by a progressive, sustainability-led agenda focused on creating long-term value for people, businesses and the nation.
Through innovation, inclusion, and impact, DFCC Bank continues to empower Sri Lankans and contribute meaningfully to the country’s economic and environmental resilience.
Could you share DFCC Bank’s vision regarding sustainable finance?
DFCC Bank is committed to shaping the future of banking in Sri Lanka through sustainability-led innovation.Our vision is to be the country’s leading enabler of sustainable finance — not just through green lending but by mobilising capital, expertise and partnerships to support the nation’s long-term environmental and social objectives.
This vision is underpinned by our strategic goal of achieving carbon neutrality by 2030, and a recognised leadership in financing renewable energy.
DFCC Bank continues to drive systemic change in Sri Lanka’s financial sector through impactful, responsible, and inclusive initiatives that contribute meaningfully to a greener, more resilient national economy.
How did DFCC Bank embark on its sustainable finance journey?
DFCC Bank’s sustainable finance journey is a continuation of its development banking legacy.In the 1990s, DFCC Bank financed Sri Lanka’s first private sector grid-connected mini-hydro power project, setting the foundation for renewable energy finance in the country.
We subsequently supported Sri Lanka’s first large-scale wind, solar, and waste-to-energy projects, reinforcing our commitment to clean energy transition.
In 2020, DFCC Bank unveiled a 10-year Sustainability Strategy with a bold ambition — to become the Bank for Green Finance by 2030.
Another milestone achievement came in 2023, when DFCC Bank became the first Sri Lankan entity accredited by the Green Climate Fund (GCF). This journey reflects our unwavering focus on building a resilient, inclusive, and sustainable financial ecosystem for Sri Lanka.
What was DFCC Bank’s experience participating in the LGX Academy?
DFCC Bank’s successful launch of Sri Lanka’s first green bond is a direct outcome of the capabilities strengthened through its participation in an training led by the LGX Academy, the United Nation Economic and Social Commission for Asia and the Pacific (UN ESCAP) and the Global Green Growth Institute (GGGI)!It was a transformative step in expanding the Bank’s capacity to mobilise capital for Sri Lanka’s sustainable development through local and international capital markets.
The training, conducted in October 2023 by LuxSE's LGX Academy experts, UNESCAP and GGGI, equipped DFCC Bank with the technical know-how to structure, issue, and market thematic bonds aligned with global best practices.
It was incredibly interesting to learn more about green, social and sustainability bond frameworks, ICMA's principles, CBI's standards, second party opinions and the role of blended finance.
This knowledge enabled DFCC Bank to take the lead in bringing innovative, climate-aligned instruments to Sri Lanka’s financial landscape.
How has the training impacted DFCC Bank’s sustainable finance strategy?
The training accelerated a key objective within DFCC Bank’s Sustainability Strategy (2020–2030) — to diversify sources of sustainable finance and lead the local capital market in green instruments. The overwhelming investor response to Sri Lanka’s first green bond validated the appetite for sustainability-focused investments and reaffirmed DFCC Bank’s role as a national enabler of green finance.
Previously reliant on international credit lines and internal funding, DFCC Bank has now successfully positioned capital market funding as a new strategic channel for green finance mobilisation.
This is a significant step in deepening Sri Lanka’s sustainable financial architecture.
What are the key lessons DFCC Bank has learned from its journey into sustainable finance so far?
- Early Adoption and Innovation: DFCC Bank led the way by financing Sri Lanka’s first private sector mini-hydro project in the 1990s, and later co-financed the first wind, solar, and waste-to-energy projects. These pioneering efforts have helped shape Sri Lanka’s renewable energy sector.
- Strategic Planning: The Bank’s 10-year Sustainability Strategy underpins its commitment to planned, purpose-driven transformation.
- Partnerships and Credibility: Collaborations with global institutions like the Asian Development Bank and participation in the LGX Academy training have enabled DFCC Bank to refine frameworks and maintain credibility in green finance.
- Market Validation: The successful issuance of Sri Lanka’s first green bond confirmed that sustainable finance is both commercially viable and nationally impactful.
- Holistic Integration: Sustainability has been embedded across DFCC Bank’s business—from product design to credit policy and risk frameworks—ensuring long-term alignment with national and global ESG goals.
What is the next step in DFCC Bank’s sustainability agenda?
DFCC Bank is now building on the momentum of this historic milestone to deepen its national impact — by expanding access to sustainable finance across both environmental and social dimensions.We are currently developing a robust Environmental, Social and Governance (ESG) framework that will guide the next phase of our sustainability agenda, with the objective of mobilising capital for a broader spectrum of impactful initiatives. This includes targeted support for SMEs and underserved communities which will drive inclusive economic growth across Sri Lanka.
As part of this next chapter, DFCC Bank also aims to strengthen the competitiveness of Sri Lankan exporters by helping them understand and adopt ESG principles.
By equipping businesses — particularly SMEs — with the knowledge and tools they need to meet evolving global standards, we hope to enable greater access to international markets, including the European Union, where ESG compliance is increasingly a prerequisite for trade.
This strategy reflects DFCC Bank’s broader ambition to serve not only as a financial intermediary, but as a national enabler of sustainability-led development and resilience.
What would you recommend to potential issuers or investors in green bonds?
We encourages issuers to approach green bonds not merely as a funding instrument but as a means to deliver tangible environmental and social impact.As a first mover in Sri Lanka’s green finance space, DFCC Bank recommends aligning Green Bond Frameworks with international standards such as the ICMA Green Bond Principles to ensure transparency and credibility.
Investors and issuers alike should view green bonds as critical to advancing all countries' national agendas — creating jobs, reducing emissions, enhancing energy independence, and building a resilient economy.
We are proud to lead this movement and invite all stakeholders to join in shaping a greener, more inclusive Sri Lanka.
