CSE Launches Groundbreaking GSS+ Bonds Regulatory Framework

Sri Lanka’s commitment to sustainable finance, the Colombo Stock Exchange (CSE) has announced the launch of its new GSS+ Bonds Regulatory Framework, set to take effect in March 2025. This initiative introduces the country’s first comprehensive regulatory structure for thematic bonds, reinforcing its alignment with evolving global best practices.

Replacing the term “Sustainability Bonds” in the CSE Listing Rules, the newly introduced “GSS+ Bonds” now includes a broad spectrum of thematic bonds—Green, Blue, Social, Sustainability, and Sustainability-Linked Bonds. This change reflects a more inclusive and forward-looking approach to sustainable finance.

Social Bonds, one of the key categories under the GSS+ umbrella, are designed to fund projects that tackle pressing social issues. These may include initiatives that improve access to essential services, affordable housing, healthcare, education, and employment—promoting equitable and sustainable development. The global Social Bond market has experienced rapid expansion, driven by increasing investor demand for impactful and inclusive financial instruments.

The GSS+ Bonds framework is fully aligned with the International Capital Market Association (ICMA) guidelines, ensuring consistency with internationally accepted standards. This alignment enhances the credibility and transparency of instruments listed on the CSE, bolstering investor confidence.

Further strengthening investor assurance, the verification process has been upgraded. In addition to existing assurance mechanisms and impact reporting, issuers can now adopt enhanced verification methods such as Second Party Opinions and independent Certification. These enhancements aim to provide deeper insights into the social and environmental impact of projects financed through GSS+ Bonds.

The CSE’s adoption of this robust regulatory framework is expected to pave the way for greater participation in sustainable finance markets and position Sri Lanka as a proactive player in the global transition towards inclusive and responsible economic development.