IFC Announces $166 Million Investment Program to Boost Sri Lanka’s Private Sector

Colombo, The Gulf Observer: The International Finance Corporation (IFC), a member of the World Bank Group, has unveiled a $166 million high-impact investment program aimed at strengthening Sri Lanka’s private sector and supporting the country’s transition from economic stabilization to sustainable growth.

The country-level financing package is designed to expand access to finance for small and medium-sized enterprises (SMEs), with a particular focus on women-owned businesses and the agri-business sector. IFC said the initiative seeks to promote inclusive growth and generate employment opportunities for underserved segments of the economy.

The investment will be channelled through three leading private commercial banks in Sri Lanka—Nations Trust Bank (NTB), Commercial Bank of Ceylon (CBC), and National Development Bank (NDB).

The financing structure comprises a $50 million loan, $80 million in Risk-Sharing Facilities (RSFs), and $36 million in trade finance support. IFC noted that the package aligns with national development priorities and the World Bank Group’s broader strategy to enhance economic resilience and foster long-term growth.

SMEs account for more than 75 percent of businesses in Sri Lanka and provide approximately 45 percent of total employment. Despite their central role in the economy, access to credit remains a significant constraint on their expansion.

“SMEs are the undisputed backbone of Sri Lanka’s economy, and their growth is essential for creating jobs,” said Allen Forlemu, IFC Regional Industry Director for the Financial Institutions Group in Asia and the Pacific. He added that during periods of economic stress, IFC plays a counter-cyclical role by supporting financial sectors when private capital retreats, enabling recovery and more inclusive growth.

IFC Regional Division Director for South Asia, Imad Fakhoury, said the initiative reflects the World Bank Group’s commitment to inclusive financing under its “One World Bank Group” approach. He emphasized that strengthening the financial ecosystem would help banks extend credit where it is most needed, including trade finance and digital transaction systems.

Through partnerships with NTB, CBC, and NDB, IFC said the investments aim to empower SMEs, support local communities, and help Sri Lanka’s economy better withstand future shocks while fostering competitiveness and inclusivity.