Reinforcing its longstanding commitment to Sri Lanka’s private sector, the International Finance Corporation (IFC), a member of the World Bank Group, today announced a $166 million high-impact investment program aimed at supporting local businesses and accelerating the country’s transition from economic stabilization to sustainable growth.
The comprehensive country-level financing package is designed to expand access to finance for small and medium-sized enterprises (SMEs), with a strong focus on empowering women-owned businesses and strengthening the agri-business sector. By targeting these key segments of the economy, the initiative seeks to promote inclusive growth and create job opportunities for underserved groups.
The investment has been strategically channeled through three leading private commercial banks in Sri Lanka — Nations Trust Bank (NTB), Commercial Bank of Ceylon (CBC), and National Development Bank (NDB). The package includes a $50 million loan, $80 million in Risk-Sharing Facilities (RSFs), and $36 million in trade finance support.
SMEs account for more than 75 percent of businesses in Sri Lanka and provide around 45 percent of total employment. However, limited access to credit continues to hinder their growth. Aligned with national development priorities and the World Bank Group’s strategy, the partnership aims to deliver targeted financial solutions to help SMEs overcome these challenges and strengthen Sri Lanka’s long-term economic resilience.
Commenting on the initiative, IFC Regional Industry Director for Financial Institutions Group, Asia and the Pacific, Allen Forlemu said SMEs are the backbone of Sri Lanka’s economy and vital for job creation. He noted that IFC plays a critical counter-cyclical role during economic crises by stepping in when private capital retreats, adding that the investment will help banks channel capital to women-led businesses, smallholder farmers, and key recovery-driving sectors.
IFC Regional Division Director for South Asia, Imad Fakhoury, said the initiative reflects the One World Bank Group approach to unlocking inclusive financing streams and strengthening Sri Lanka’s financial ecosystem. He emphasized that equipping banks with the tools and confidence to extend finance — including enhanced trade finance and digital transaction capabilities — will help SMEs and communities better withstand future economic shocks.
As part of the program, IFC’s $50 million financing to Nations Trust Bank marks the first IFC-funded debt investment in Sri Lanka’s financial sector since the 2022 economic crisis. Of this amount, $7.5 million, or 15 percent, has been earmarked for on-lending to women-owned SMEs, improving access to credit for women entrepreneurs across the country.
