In 2025, Commercial Bank of Ceylon set a new benchmark for sustainable finance in Sri Lanka through the issuance of the largest green bond issued by a private bank in Sri Lanka during the year, raising LKR15 billion ($47.5 million), with one Environmental Finance Sustainable Debt Awards judge praising both the innovative structure and the scale of the bond.

Fully aligned with its Sustainable Bond Framework and the Central Bank of Sri Lanka's Green Finance Taxonomy, the bond channels proceeds into renewable energy, energy efficiency, green buildings, clean transportation, sustainable water management, and climate-smart agriculture.

It was also Sri Lanka's first Basel III–compliant Tier 2 green bond, successfully integrating sustainability objectives with regulatory capital requirements.

Commercial Bank of Ceylon says this structure not only strengthens the bank's capital base but also expands its capacity to finance green assets, demonstrating how sustainable debt can be embedded into core financial strategy.

Investor confidence was evident in the bond's strong reception, with subscriptions exceeding LKR20 billion on the opening day.

One judge commented that the Basel III–compliant Tier 2 green bond structure resolves "regulatory hurdle", enabling foreign investment and lending, also commending the "flawless" verification and reporting and "market impact" in setting a Sri Lankan benchmark.