Impact Investment Exchange (IIX) Founder Prof. Durreen Shahnaz has set a target of mobilising $ 500 million in Orange capital in Sri Lanka by 2030 to expand access to finance for women-led businesses and enterprises that support women’s economic participation.
In an interview with the Daily FT, the official media partner of the Orange Economy Summit 2026, Prof. said Sri Lanka has the potential to become the Orange hub of South Asia as IIX expands its presence in the country.
The target builds on more than $ 7.4 million that IIX says it has invested in Sri Lanka since entering the market in 2020. According to the organisation, those investments have reached more than 80,000 people, most of them women and their family members.
‘We are not visitors here. We have invested more than $ 7.4 million in Sri Lanka, and that capital has reached 80,000-plus lives, particularly women. We came in 2020, we did not walk away during the crisis, and we were one of the first impact investors to come back in 2025 and again this year,’
Prof. Shahnaz said.
The next phase of IIX’s work will focus on developing Sri Lanka’s Orange Bond market by connecting local banks, businesses and investors with financing opportunities that support women’s economic participation.
Two Orange Bonds are planned for December 2026, while a MoU between IIX and the Colombo Stock Exchange (CSE) is expected to support market development.
The CSE has already adopted the Orange Bond Principles within its Green, Social, Sustainability and Sustainability-linked (GSSS) framework. Sejaya Micro Credit has become the first recipient of Orange Capital in Sri Lanka, while a roadmap for developing the country’s Orange Market was presented together with the Lanka Impact Investing Network (LIIN) and World University Service of Canada (WUSC).
The $ 500 million target is intended to mobilise capital from multiple sources rather than through IIX funding alone. These include Orange Bonds listed on the CSE, lending by Sri Lankan financial institutions, domestic investors and a potential allocation from IIX’s planned Orange Climate Fund.
‘A woman who has repaid a small loan can borrow what her business needs to grow, and withstand the next shock, in any district of this country. The two Orange Bonds this year are the first step, not the finish line,’ Prof. Shahnaz said.
Alongside the capital target, IIX aims to reach 1.2 million women and their families in Sri Lanka by 2030.
Founded in Singapore in 2009 with support from the Rockefeller Foundation, IIX connects capital markets with businesses and institutions that deliver measurable social and environmental outcomes. The organisation says it operates in more than 60 countries and has created an impact on more than 159 million lives.
Prof.Shahnaz, who was born in Bangladesh, studied at Smith College, the Wharton School and Johns Hopkins School of Advanced International Studies before becoming the first Bangladeshi woman to work on Wall Street at Morgan Stanley. Her experience in investment banking, development finance and microfinance helped shape IIX’s approach to impact investing and using financial markets to channel capital towards underserved communities.
Its Women’s Livelihood Bond Series has raised more than $ 320 million through seven bonds, financing businesses across sectors including microfinance, healthcare, sustainable agriculture and clean energy.
Q: IIX has been active in Sri Lanka since 2020. What has kept the organisation committed to the country?
A: We believe in Sri Lanka and take a long-term view. Every country goes through challenges, but what matters is how those challenges are managed and overcome.
Sri Lanka has strong foundations, particularly its people. It has a highly educated workforce, resilient institutions and businesses that have continued to operate despite difficult circumstances. Those strengths gave us confidence to remain engaged during the crisis and continue investing in the country.
‘We believe in Sri Lanka, let us start with that’
Q: How does IIX connect Sri Lankan businesses with international capital markets?
A: When IIX invests in a Sri Lankan lender or business through our bond programs, those institutions effectively gain access to capital from international investors.
In 2020, when global investor confidence in Sri Lanka was limited, we brought Sri Lankan lenders into a bond listed on the Singapore Exchange. Investors purchased the bond, and the capital reached women entrepreneurs across the country.
The same pathway is open to businesses that achieve Orange certification or participate in Orange-labelled financial instruments. Building a track record through these standards can help companies connect with regional and global investors.
Q: Sejaya Micro Credit is the first recipient of Orange capital in Sri Lanka. Why was it selected?
A: We saw an institution committed to serving women, demonstrating strong results and maintaining responsible lending practices.
A key factor was its track record of treating customers fairly and avoiding practices that place excessive burdens on borrowers. We also focus heavily on measuring impact and verifying outcomes directly with women clients. The results we observed were positive.
Q: Microfinance has faced criticism over high interest rates and borrower indebtedness. How does IIX address those concerns?
A: I have seen microfinance done well and done badly. The difference is transparency and data.
Orange verifies outcomes directly with women borrowers, while our investment pipeline is increasingly expanding into sectors such as agriculture, tourism and supply chains. Microfinance is often the starting point because that is where women already have established borrowing records, but it is not the end goal.
Q: You have worked in conventional finance and development before founding IIX. What led you to create an organisation focused on impact investing?
A: Throughout my career, I saw how finance could influence social outcomes and create opportunities for people who were traditionally excluded from financial systems.
One experience that stayed with me was working with women borrowers through Grameen Bank in Bangladesh. Many could not write their names and relied on thumbprints instead of signatures. Some would practise writing their names in the dirt with a stick before signing loan documents. Seeing women gain confidence and control over their financial decisions reinforced my belief that access to finance can be transformative.
After working in investment banking and development finance, I became increasingly interested in finding ways to use capital markets to support positive social impact while maintaining financial discipline. That thinking eventually led to the creation of IIX.
Q: What did you learn from building an organisation in a field that did not yet have an established market?
A: When you build something new, you are often asking people to believe in a future that does not yet exist. We were creating something that did not fit neatly into existing categories, so we had to demonstrate through results that impact investing could work at scale.
Q: What does being a ‘defiant optimist’ mean to you?
A: It means choosing optimism while recognising challenges. Optimism is not about ignoring problems. It is about believing change is possible and working to make it happen.
For me, finance is a tool. The question is whether it is used in ways that create opportunities for more people and reduce inequality.
Q: The Women’s Livelihood Bond Series has raised more than $ 320 million. How did the idea develop?
A: We realised that making individual investments would not generate the scale of capital needed to drive meaningful change.
That led us to create a structure that could bring together different institutions and investors through capital markets. The approach evolved into the Women’s Livelihood Bond Series, which has since grown to seven issuances and helped create what is now recognised as the Orange Bond asset class.
The sectors financed have also expanded from microfinance into healthcare, sustainable agriculture and clean energy.
Q: What did the Bond Series demonstrate about investing in women during periods of uncertainty?
A: It showed that women are not the risk. In many cases, they are the source of resilience.
Sri Lanka was part of the series in 2020, and we remained engaged throughout difficult periods. Long-term investors need to stay committed during challenging times if they want to contribute to recovery and growth.
Q: What is the Orange Movement, and how does it differ from traditional corporate social responsibility?
A: The Orange Movement is about using mainstream finance to create positive outcomes for women and underserved communities.
This is not charity or corporate social responsibility. It is about mobilising investment capital and demonstrating that doing good and achieving financial returns can work together.
Q: Why do you believe Sri Lanka is well positioned to lead the movement in South Asia?
A: Sri Lanka has credibility, capable institutions and the ability to work with a wide range of stakeholders. Those strengths position the country well to become a regional platform for Orange finance and investment.
Q: Which Sri Lankan industries could benefit most from Orange capital?
A: Apparel, agriculture, tourism and export supply chains offer significant opportunities.
Global buyers are increasingly interested in understanding how businesses treat workers and support women. Companies that can demonstrate positive outcomes for women may gain a competitive advantage in international markets.
A hotel group, apparel exporter or agricultural company can all participate by supporting women-owned suppliers, businesses and entrepreneurs within their value chains.
Q: How can Sri Lanka direct more economic activity towards women-owned businesses?
A: Women played a major role in building sectors such as apparel, yet relatively few own businesses or hold senior decision-making positions.
There are opportunities to support women-owned suppliers, women-led enterprises and women entrepreneurs across tourism, manufacturing and agriculture. Greater access to growth capital will be important in enabling that transition.
Q: What role can domestic investors play?
A: Local investors are essential to the future of Orange finance.
Sri Lankan pension funds, insurers, banks and eventually retail investors can all contribute to building the market. Financial institutions can also identify and label existing lending that already supports women and use that as a foundation for future Orange Bond issuances.
‘Sri Lanka can be the Orange hub of South Asia. Not someday. Now.’
Q: How can the benefits extend beyond Colombo?
A: Sri Lanka’s next growth story will be written across the districts, not only in Colombo.
Orange capital should support women-led businesses throughout the country, whether in agriculture, food processing, tourism or other sectors. Expanding women’s participation in the economy can also contribute to broader development and sustainability goals.
Q: IIX has announced a planned $ 1 billion Orange Climate Fund, with half intended for South Asia. What does this mean for Sri Lanka?
A: Around half of the planned fund will focus on South Asia. If Sri Lanka develops the necessary pipeline of businesses, lenders and market infrastructure, it could attract a significant share of that capital.
Readiness is critical. Investors need institutions and businesses that can demonstrate both financial performance and measurable impact.
Q: What should Sri Lankan banks, businesses and regulators do now?
A: Banks should identify lending that supports women and explore opportunities to verify and label that financing under Orange standards.
Businesses can strengthen support for women-owned suppliers and entrepreneurs within their supply chains. Regulators and market institutions can help by promoting transparency, standards and investor awareness.
We also want to build a pipeline of issuers beyond microfinance, including climate-smart agriculture, tourism, resilient supply chains and the blue economy.
Q: What would success look like by the next Orange Economy Summit?
A: I would like to see the first Orange Bonds performing well and more issuers preparing to enter the market.
Our goal remains mobilising $ 500 million in Orange capital in Sri Lanka by 2030 and reaching 1.2 million women and their families. Most of that capital will need to come through financial institutions, investors, Orange Bonds and potentially the planned Orange Climate Fund.
The capital is available. The question is whether Sri Lanka will be ready to attract it.
Q: What would you like to tell a young Sri Lankan woman who wants to build a business but struggles to find capital?
A: Investors fund evidence, not just ideas. Know your numbers, understand your impact and be prepared to demonstrate both.
Most importantly, do not wait for permission to build something. Sri Lanka gave the world its first woman Prime Minister in 1960, and that legacy shows what women can achieve when barriers are removed.
Capital will not always find entrepreneurs on its own, which is why initiatives such as Orange are focused on building pathways that connect women-led businesses with the financing they need to grow.