Turning the Tide: DFCC Bank’s Blue Bond Charts a New Course for Sri Lanka’s Future.
September 30, 2025
As an island nation, the sea has always been central to Sri Lanka. It provides food, jobs, trade, and livelihoods. Fishing communities, coastal towns, and tourism all depend on it. But today, that lifeline is under threat. Climate change pushes tides higher. Plastic and waste choke the waters. The balance that held for generations is shifting.
It is here that a new step has been taken. DFCC Bank is issuing Sri Lanka’s first Blue Bond, dedicating LKR 3 billion to clean water, coastal resilience, and the ocean economy. A bond shaped not only to raise funds, but also, to carry responsibility.
More than finance, it is a signal: that Sri Lanka can stand with nations turning markets towards their seas. That its banks, investors, and communities can act together to protect what has always been its lifeline.
Why Blue Matters
Blue Bonds are designed to fund marine and water-related projects, and are a subset of Green Bonds. Whilst Green Bonds direct capital toward projects contributing to environmental objectives, such as climate change mitigation and adaptation, natural resource and biodiversity conservation, and pollution prevention and control, Blue Bonds focus exclusively on sustainable ocean-based industries that promote economic growth while safeguarding aquatic ecosystems, including enhancement of access to clean water. Globally, the idea is still young. The Seychelles issued the world’s first sovereign Blue Bond in 2018, followed by countries such as Fiji, Ecuador, and Indonesia.
For Sri Lanka, the timing is critical. Nearly 30 percent of the population lives in coastal districts. Fisheries remain a cornerstone of rural employment. Tourism, one of the country’s strongest sectors, depends on clean beaches and healthy marine ecosystems. Yet plastic pollution, wastewater management, and the mounting threats of climate change place this delicate balance at risk.
The Blue Bond gives Sri Lanka a chance to respond – not with rhetoric, but with resources.
From Green to Blue: A Legacy of Firsts
For DFCC Bank, the Blue Bond is not an isolated initiative. It is the next chapter in a 70-year history of financing national development and leading in sustainable finance.
The Bank financed Sri Lanka’s first grid-connected mini-hydro power project in 1996, catalysing the country’s renewable energy sector. It went on to support wind power, solar energy, and even the nation’s first waste-to-energy facility. In 2024, DFCC Bank issued Sri Lanka’s first-ever Green Bond, which was listed on the Colombo Stock Exchange, the Luxembourg Green Exchange, and the NSE International Exchange at Gift City in India.
“Each step has been about proving that Sri Lanka can meet the highest international standards,” says Thimal Perera, CEO of DFCC Bank. “The Blue Bond continues that journey – this time by bringing focus to our oceans, waterways, and the communities that depend on them.”
The Bond Itself
The LKR 3 billion issuance carries an expected rating of ‘A(EXP)(lka)’ from Fitch Ratings. It has maturities of three, four, or five years, with proceeds earmarked for projects such as:
- Clean drinking water supply infrastructure.
- Sustainable marine fisheries and aquaculture.
- Marine and coastal pollution control and wastewater treatment.
- Eco-friendly marine and coastal tourism
- Climate adaptation for coastal communities.
- Clean marine transportation.
- Marine renewable energy.
Transparency will be at the core. The bond follows the International Capital Market Association’s (ICMA) Green, Social, and Sustainability Bond Principles, along with emerging Blue Bond guidelines. Clear reporting, defined use of proceeds, and measurable outcomes will underpin its credibility.
Beyond Finance: A National Responsibility
For DFCC Bank, the Blue Bond is both a financial instrument and a responsibility. At a time when Sri Lanka is rebuilding investor confidence, the issuance demonstrates that the country can access sophisticated forms of sustainable finance – not only to stabilise markets, but to protect its natural capital.
“This is about recognising that the ocean is not just scenery – it is the foundation of Sri Lanka’s economy and future,” Thimal Perera explains further. “With the Blue Bond, we are bringing international capital into areas that will secure livelihoods, protect ecosystems, and strengthen resilience for generations to come.”
A Step into Global Leadership
By launching the Blue Bond, Sri Lanka joins a small but growing circle of countries using finance to protect marine ecosystems. It shows that even a small island nation, with its vulnerabilities laid bare, can set an example in aligning markets with sustainability.
For DFCC Bank, now in its 70th year, the move is also deeply symbolic. Born in 1955 to finance the nation’s development, the Bank has evolved into a fully-fledged commercial bank, with sustainability and development banking at its core. The Blue Bond demonstrates that development and environmental stewardship are not competing goals, but complementary imperatives.
A Step into Global Leadership
Looking Forward
As the bond begins to channel funds into eligible projects, the real story will not be told in markets or rating tables. It will be told in fishing villages with cleaner harbours, in coastal communities adapting to climate risks, in tourism operators preserving coral reefs, and in households with access to safe drinking water.
“Finance can change the course of a nation. With its first Blue Bond, DFCC Bank is proving that it can also change the course of its oceans,” Thimal Perera concluded.
About DFCC Bank
DFCC Bank PLC, established in 1955 and listed on the Colombo Stock Exchange since 1956, is one of Sri Lanka’s leading financial institutions. Regulated by the Central Bank of Sri Lanka and rated A (lka) by Fitch Ratings, the Bank offers a comprehensive portfolio of retail, corporate, and SME banking services, along with treasury, investment, and trade finance solutions.
With customer centricity and sustainable innovation at its core, DFCC Bank delivers seamless and secure banking experiences, which include digital platforms like DFCC MySpace, and through a network of 134 branches and access to over 6,000 ATMs via the LankaPay network.
A recognised leader in sustainable finance and renewable energy initiatives, DFCC Bank is committed to reducing environmental impact and fostering long-term economic resilience.
