IFC invests $ 166 m to support Sri Lankan businesses, drive economic growth

REINFORCING its long standing commitment to Sri Lanka’s private sector, the International Finance Corporation (IFC), a member of the World Bank Group, yesterday announced a high-impact investment program of $ 166 million to support Sri Lankan businesses and accelerate the country's transition from economic stabilisation to sustainable growth.

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This comprehensive country level financing package aims to expand financial access for small and medium-sized enterprises (SMEs), with a focus on empowering women-owned businesses and the agribusiness sector. By targeting these key areas of Sri Lanka’s economy, the financing seeks to drive inclusive growth and unlock job opportunities for underserved groups.

This investment has been made strategically in three of Sri Lanka's leading commercial private banks - Nations Trust Bank (NTB), Commercial Bank of Ceylon (CBC), and National Development Bank (NDB)-comprising a $50 million loan, $80 million in Risk Sharing Facilities (RSFS), and $ 36 million in trade finance support.

While SMEs account for over 75% of all Sri Lankan businesses and 45% of jobs, access to credit remains a significant barrier to their expansion. Aligned with both the World Bank Group and key national priorities, this partnership aims to deliver targeted solutions for SMEs, helping businesses overcome challenges and supporting the country's long-term economic resilience.

IFC Regional Industry Director-Financial Institutions Group (Asia and the Pacific) Allen Forlemu said: "SMEs are the undisputed backbone of Sri Lanka's economy, and their growth is essential for creating jobs.