📈 HNB Urges Sustainable Banking Core Strategy to Build Climate Resilience

• Climate Risk & Economic Impact: Sri Lanka produces <0.1% of global GHG emissions but faces severe climate shocks. Cyclone Ditwah affected >2.1M people with US$ 4.1 Bn in estimated damages, with a Super El Niño forecasted to further impact livelihoods. • Strategic Shift in Banking: Sustainability is transitioning from a peripheral exercise to a core strategic mandate in banking. Sector efforts are guided by CBSL’s Sustainable Finance Roadmap 2.0, Green Finance Taxonomy, and the SLSBI. • HNB Financial Initiatives: - Issued a Rs. 10 Bn Sustainability Bond targeting green and social priorities. - Implemented a complete exclusion policy on coal financing. - Expanded green lending aligned with national regulatory taxonomies. • Key Sector Impact: - MSMEs: Driving financial inclusion and capacity building, particularly for women-led enterprises to scale into sustainable supply chains. - Agriculture: Supporting climate-resilient farming techniques through dedicated initiatives like the Saru Sara program. • Key Priorities: Needs center on improving decision-useful climate data, financing low-carbon industry transitions, and assisting local exporters to meet rising global compliance standards.