International Finance Corporation commits USD 166m to boost Sri Lanka’s private sector

Colombo, Jan 26 (PTI) The International Finance Corporation (IFC), a member of the World Bank Group, has announced a USD 166 million high-impact investment programme aimed at strengthening Sri Lanka's private sector and supporting the country's transition from economic stabilisation to sustainable growth.

The country-level financing package is designed to expand access to finance for small and medium-sized enterprises (SMEs), with a special focus on women-owned businesses and the agri-business 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." While SMEs account for over 75 per cent of all Sri Lankan businesses and 45 per cent 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.

"SMEs are the undisputed backbone of Sri Lanka’s economy, and their growth is essential for creating jobs. During periods of crisis, IFC plays a critical counter-cyclical role by stepping in when private capital pulls back – and this investment in Sri Lanka’s financial sector reflects that commitment." "By helping banks channel capital to women-led businesses, smallholder farmers, and the sectors driving recovery, we are enabling Sri Lanka not just to rebound, but also to grow forward with greater resilience and inclusivity,” said Allen Forlemu, IFC Regional Industry Director, Financial Institutions Group, Asia and the Pacific.

The IFC will also deliver technical expertise to modernise digital transaction banking and supply chain finance systems, directly expanding credit access for underserved SMEs, the release said.

The IFC under the World Bank Group is the largest global development institution focused on the private sector in emerging markets. They deploy capital and expertise in more than 100 countries to influence to create markets and opportunities in developing countries. PTI CORR AMS