IFC invests US $ 136mn FY13; doubles investment portfolio

17 October 2013 10:22 am Views - 5900

International Finance Corporation (IFC), a member of t he World Bank Group, has invested US $ 136 million in Sri Lanka in the fiscal year 2013 to promote inclusive growth and job creation, the organisation said in a statement yesterday .

With these investments, IFC’s committed portfolio in Sri Lanka now stands at US $ 280 million, more than double what it was two years ago.

IFC’s investments and advisory projects are expected to help over 120,000 micro, small, and medium enterprises through easier access to finance and improved business skills. These projects will create over 500,000 jobs by 2019.

“IFC’s combined investment and advisory approach provides effective solutions for our clients to boost economic growth and help small businesses,” IFC Country Manager Sri Lanka and Maldives Adam Sack said.

“IFC continues to scale up its programme in Sri Lanka to reach more people and help improve lives.”

IFC made its largest investment in Sri Lanka’s financial markets in 2013 with a US $ 75 million 10-year subordinated loan to Commercial Bank of Ceylon through a fund managed by its Asset Management Company. This is expected to increase access to finance for around 16,000 small businesses and generate 170,000 direct and indirect jobs by 2017.

IFC also provided a 10-year, US $ 24 million loan to National Development Bank PLC to help it extend financing options across all business segments. Another IFC investment with Cargills Bank will make it easier for small business owners and farmers to access finance and will create over 90,000 direct and indirect jobs by 2019.

IFC’s investment of US $ 25 million in Softlogic Holdings PLC in 2013 is expected to boost the company’s tourism and retail operations and create jobs.

IFC’s advisory services help micro and small businesses access loans and financing and new markets. An IFC project with Sri Lanka’s Credit Information Bureau makes it easier for around 37,000 micro and small businesses to access loans and other forms of financing with movable assets as collateral. IFC also assists Nations Trust Bank help around 25,000 small business customers become more competitive with the SME Toolkit, IFC’s online training tool.

IFC’s total investments in South Asia have reached US $ 2.46 billion across 73 projects during 2013, up 55 percent from the previous year. In Sri Lanka, IFC will continue to focus primarily on access to finance, infrastructure, tourism, agribusiness and clean energy.