9 April 2024 01:33 am Views - 324
In an effort to bolster growth and combat climate change, the International Finance Corporation (IFC) and Citizens Development Business Finance PLC (CDB) announced a new partnership to enhance the latter’s green portfolio, fostering sustainable and inclusive growth. The IFC will support CDB to expand its climate finance product offerings and devise a carbon credit aggregation business model, aligning it with the country’s climate commitments. The IFC will also help CDB review and strengthen its environmental and social management system, in line with the IFC’s Performance Standards. “Our collaboration with the IFC is aligned with CDB’s strategic aspirations to realising unprecedented growth and our firm sustainability commitment. This partnership with the IFC will strengthen our journey of moving towards becoming a net zero entity. CDB’s strategy considers embracing sustainability and tech disruption as the key enabling pillars,” said CDB Managing Director/ Chief Executive Officer Mahesh Nanayakkara. This collaboration coincides with the visit of IFC Regional Director for South Asia Imad N. Fakhoury, who reiterated the IFC’s dedication to support Sri Lanka’s development, climate readiness and resilience efforts during his inaugural trip to the country. “Sustainability is at the heart of the IFC’s mission in Sri Lanka. Our latest partnership with CDB allows us to leverage our expertise, including a deep understanding of the nation’s financial markets and a strong local presence,” said Fakhoury. “In alignment with the national priorities, the IFC is committed to advancing Sri Lanka’s climate agenda, fostering economic stability and creating jobs and opportunities. We focus on an inclusive transition that prioritises people, jobs and long-term development.
Given the nascent market for green finance in Sri Lanka, the IFC aims to support financial institutions by building their capacity and helping them align their lending portfolios with the changing climate scenarios,” he added. Fakhoury’s agenda included meetings with several private sector clients as well as government dignitaries, including the Power and Energy Minister, Finance State Minister, Advisor to President of Sri Lanka, Central Bank of Sri Lanka Governor and Treasury Secretary, among others. His top priorities are to expand crucial private capital mobilisation and greater investment in Sri Lanka, while underscoring the IFC’s commitment to support the country’s economic rebound. Since the onset of the pandemic, the IFC has invested over US $ 1 billion in Sri Lanka, providing essential long-term capital and trade financing to help sustain businesses and preserve jobs. In response to Sri Lanka’s economic crisis, the IFC provided crosscurrency swap lines totalling US $ 100 million to three private banks, providing a timely US dollar liquidity injection to help strengthen the viability of trade, bank liquidity and access to critical goods and items during a pivotal period