Sri Lanka has formally joined the global Orange Movement, with the Colombo Stock Exchange (CSE) and Impact Investment Exchange (IIX) signing a memorandum of understanding to introduce Orange Bonds supporting gender equality and climate resilience.

Signed at the Orange Economy Summit 2026 in Colombo, the agreement incorporates Orange Bond Principles into the CSE’s existing sustainable bond framework, enabling issuers to use established listing infrastructure.

CSE Chief Executive Officer Rajeeva Bandaranaike identified Alliance Finance Company PLC as the first prospective issuer, planning to raise Rs. 1 billion. Frameworks for the country’s first two Orange Bonds have been completed, with issuance targeted by December 2026.

The summit was convened by IIX alongside the Lanka Impact Investing Network (LIIN) and the CSE, bringing together policymakers, regulators, investors and financial institutions.

IIX Founder and Chief Executive Officer Prof. Durreen Shahnaz said the organisation had committed to reaching more than 1.2 million women and their families in Sri Lanka by 2030.

A research paper launched at the summit outlined opportunities to access a US$500 million South Asian Orange Capital allocation and increase women-owned enterprises’ share of MSME lending by value.

Summit figures showed these enterprises received 46% of MSME loans by number, but only 28% by value.

LIIN Chairman Chandula Abeywickrema highlighted borrowing costs as a barrier to entrepreneurship, calling for accessible, affordable financing supported by business guidance.

Bandaranaike stressed that successful Orange Bonds require sound financial fundamentals, effective governance, transparent use of proceeds and reliable impact measurement, ensuring social objectives and financial discipline reinforce each other.