Industry Guiding Principles
The Sri Lankan Sustainable Banking Principles (SBP) have been developed under the leadership of the Sri Lankan Bankers Association in 2015 and were signed by 18 Sri Lankan banks on November 5, 2015. The Principles are fully in line with the commitment of the Sri Lankan banking sector to contribute to sustainable economic growth. Banks can foster positive development impacts whilst protecting the communities and environments in which they operate
Principle 1
We will avoid, minimize or offset the negative impacts of our Business Operations on the environment and local communities in which we operate and, where possible, promote positive impacts.
Develop an appropriate E&S policy in line with financial products and services offered and with priority sectors; at minimum a strict review and potential decline of clients or engagements that do not comply with local E&S laws and regulations.
Outline appropriate E&S procedures as a formal part of its client engagement and approval process to implement its E&S policy.
E&S procedures among others include risk screening, risk categorisation into high , medium , low risks and determining required due diligence procedures, related governance provisions and risk monitoring.
Principle 2
We will implement robust and transparent E&S governance practices in our respective institutions and assess the E&S governance practices of our clients.
Establish E&S governance responsibility, including clear lines of responsibility and accountability
Develop institutional E&S governance practices, including governance structure, limits of authority, standards and codes of conduct to support implementation of its E&S policy.
Actively support key industry initiatives aiming at addressing E&S governance issues with clients operating in sensitive sectors.
Implement compensation and incentives schemes linked to E&S performance
Establish E&S audit procedures (internal, and where appropriate external)
Increase public disclosure and dialogue
Principle 3