Abstract:
1. Introduction
This study focuses on identifying the trend of green finance and barriers to
green finance when implementing and developing green finance in Sri
Lanka’s selected commercial banks. For this study, the selected banks are
Commercial Bank Ceylon plc, Sampath Banks and DFCC Bank. The research
highlights the importance of green finance, current trends, barriers to
implementing green finance and future developments in green finance.
2. Research Methodology
The main objective of this research to identify these three areas and
overcome these barriers. This study was qualitative; semi-structured
interviews were conducted with head branch managers, and data was
collected according to their perspectives. These interviews focus on
identifying the banks’ current trend of green finance, the challenges they
face, and their future direction to word green finance. The collected data is
analyzed by using thematic analysis. Mainly, it is a review of relative
literature on green finances globally and within Sri Lanka.
3. Findings and Discussion
Preliminary findings are relevant that green finance practices were
gradually adopted. There is a demand for renewable energy projects, and
banks provide loan assistance for that. Lack of customer awareness of
green finance products and services was identified as the main barrier. All
the managers mentioned this barrier as the main barrier. Rules and
regulation impacts, high initial cost, and low rural area people’s awareness
are the main barriers to green finance. They have a good perspective
related to green finance development.
4. Conclusion and Implications
This research provides important insights for other banking institutions,
policymakers, and financial institutions, identifying the need for related the
need for strong rules, regulation frameworks, and facilities for green
finance in achieving Sri Lanka’s sustainable development. Through this
research, the banking institutions selected for this research, as well as
other institutions that implement green finance, will be a guide to
implementing green finance by identifying the existing findings.
