A thesis submitted in partial fulfilment of the requirements for the degree of Master of Science, School of Environment, Resources and Development

Thesis (M.Sc.) - Asian Institute of Technology, 2001

Since environmental damage is increasing worldwide, it is having an economic effect and is of growing importance for banks. Banks are intensively uses of resources such as paper energy but their major impacts on the envirom11ent arises from envirom11ent indirectly tlu·ough their lending and financing activities. However, Increasingly, financial institutions try to assess environmental risks before granting loans or credit. Banks in general -although there have been exception -have been slow to face environmental liabilities, opportunities, and responsibilities. Though, the Banks in Colombo City are considerably forward toward the sustainable urban development and environment. The existing practices in the bank shows some interesting results including better in-house keeping, environmental risk assessment, enviro1U11ental products and services too. The Pollution Control and Abatement Fund and E-friends loan schemes are notable in Sri Lanka. In addition, the comparison of practices, knowledge and skills of the National development Bank of Sri Lanka (NDB) with the one of the leading envirom11ental practitioner UBS, shows the local bank can be a better green banking model. This research study the existing urban environmental policy and management practices of public institutions towards banks, the relations and links among them and explore the existing level of practices, knowledge and skills of sustainable urban management of banks. Then the research analyzes the changes that are needed in financial and public institutions and their relationships in order to contribute to sustainable development. Finally, the research tried to draw Strategies for sustainable urban development for the Banks in Colombo and formulate a set of reconu11endations includes the action plan for the financial institution and public institutions to ensure the sustainable urban development in Colombo City.