Transforming Finance: A Vision for Sustainable Growth

As the CEO of Sarvodaya Development Finance (SDF), I have witnessed firsthand how sustainability has shifted from a peripheral "nice-to-have" to a fundamental necessity. In an era marked by climate shocks, the global pandemic, and economic volatility, non-sustainable models have proven to be fragile. Today, sustainability is not merely about storytelling; it is core risk management. At SDF, our very identity, rooted in the Sarvodaya Movement, which means "awakening of all" is built on ethical, community-centered finance. We have chosen to stand apart by integrating ESG principles directly into our business strategy, proving that when you empower underserved communities and align finance with genuine impact, competition becomes irrelevant.

How has the perception of sustainability in finance changed?

Historically, the finance industry judged success purely on financial returns. However, recent global

shifts̶including the UN Sustainable Development Goals (SDGs), the Paris Agreement, and the

requirement for transparent ESG disclosures - have changed the landscape. For us, sustainability is

not a layer bolted onto our operations; it is the core of our existence. By focusing on development

finance, we address the real-world needs of communities, turning unbankable individuals into active,

empowered participants in the economy. This transition has moved sustainability from an exotic

concept to a mainstream mandate, required by regulators, investors, and rating agencies alike.

What are the main pillars of your sustainability focus?

My team and I focus on four main pillars that align with the UN SDGs, primarily centered on poverty

reduction, quality education, gender equality, and clean energy. We empower women, who are

central to village economies, and provide financial assistance and equipment for sustainable

agriculture. We also invest in community empowerment, ensuring our clients have the training and

knowledge they need to succeed. Significantly, 54% of our dividend payout is directed back into the

broader Sarvodaya Movement to support essential social work, including maintaining over 1,200

preschools across Sri Lanka.

How does sustainable management impact leadership performance?

Sustainability is no longer a separate key performance indicator (KPI); it sits right alongside

profitability, portfolio quality, and growth on my scorecard. Managing impact measurement, client

protection standards, and integrated reporting is not just overhead - it is the strategy that unlocks

cheaper, more patient international capital. For instance, our commitment to these values has

allowed us to attract significant funding from international entities like EDFI, Triple Jump, Incofin

and others. This focus has been a major driver in our company's strong growth, with a 64% growth

rate in the last year.

What is the significance of your sustainable bond issuance?

We issued Sri Lanka’s first high-yield sustainable bond, a landmark Rs. 2 billion instrument listed on

the Colombo Stock Exchange (CSE). Beyond the domestic market, we pursued a secondary listing on the Luxembourg Stock Exchange (LuxSE), which hosts over 40% of the world’s listed sustainable bonds. This secondary listing is significant for a community-rooted institution from a frontier market; it validates our business model, ensures we meet international disclosure standards, and provides us with global visibility among impact-minded investors.

What skills do you look for when recruiting new talent?

We are looking for individuals who are not just technically proficient in professional qualifications

and standards, but who also possess a deep, genuine empathy for our grassroots customers. We

value candidates with literacy in ESG and impact measurement, climate risk analysis, and integrated

reporting frameworks like GRI and IFRS S1/S2. Ultimately, I want people who have the mindset to

protect our environment and community - those who are driven by service and kindness rather than

just a "draconian" focus on short-term profits.

What common mistakes do you see in the financial industry?

Many institutions treat sustainability as a mere CSR or PR exercise rather than embedding it into

their credit policy and overall strategy. I also see issues with greenwashing, where firms make

unverified claims, and a tendency to leave sustainability to junior officers rather than owning it at the

Board and CEO levels. To improve, the industry must stop chasing labels and focus on real,

measurable outcomes. Genuine, long-term returns will follow if we make an authentic impact on the

planet and our communities.

What is the broader vision for sustainable finance?

My vision is to continue proving that finance is a powerful tool that, when used properly, can awaken

society. We aim to keep strengthening our frameworks, increasing our transparency, and maintaining our position as a leader in development finance. By fostering innovation and efficiency, we not only reduce waste and costs but also build resilience against future climate challenges. If we do this right - by prioritizing impact and adhering to strict governance - we can ensure not only the financial health of our institution but also the resilience and dignity of the communities we serve, ultimately helping to save this planet for future generations.