DFC approves new loans worth of US $ 120mn to SL

• US $ 100mn to ComBank, US $ 15mn to BPPL and US $ 5mn to MA’s Tropical Food
• With this, DFC’s existing portfolio in Sri Lanka grows to nearly US $ 300mn

The United States of America embassy in Colombo yesterday announced that that the U.S. International Development Finance Corporation (DFC) board of directors has approved US $ 120 million in new loans to grow and support the Sri Lankan economy.

“For 70 years, the United States has provided foreign assistance, loans and trade opportunities to help grow the Sri Lankan economy and support the Sri Lankan people,” said U.S. Ambassador to Sri Lanka 
Julie Chung.  

“Today’s (15th) announcement is good news for the private sector, as DFC’s US $ 120 million in new investments will reach small and medium-sized businesses and help to provide equity, jobs and futures.”  

The projects announced yesterday included a US $ 100 million direct loan to Commercial Bank of Ceylon, Sri Lanka’s leading commercial private bank, to expand lending to micro, small and medium-sized enterprises (MSMEs) and address the credit gap for women-owned businesses, which represent 25 percent of MSMEs in Sri Lanka.

In addition, DFC announced a US $ 15 million loan to BPPL Holdings PLC, a polyester yarn manufacturer, incorporating recycled plastic materials. The loan will support increased production and strengthen Sri Lanka’s recycling infrastructure in support of efforts to reduce plastic waste in Sri Lanka.

 Also announced yesterday was a US $ 5 million loan to MA’s Tropical Food Processing (Private) Limited, a sustainable food company, to finance its expansion and grow its supplier network.  This effort will strengthen the Fair Trade practices in Sri Lanka and create new jobs, with an emphasis on increasing women’s employment.
These new loans build on DFC’s existing portfolio in Sri Lanka of nearly US $ 300 million in funding for the MSME sector over the past two years.

“The diverse set of transactions announced today will make real impact across a range of sectors and development challenges,” said DFC CEO Scott Nathan. 

“These transactions showcase how DFC strategically catalyses private capital where it matters most.”