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IFC invests $166 Mn in 3 Lankan banks to support businesses

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Reinforcing its longstanding commitment to Sri Lanka’s private sector, the International Finance Corporation (IFC), a member of the World Bank Group, yesterday announced a high-impact investment programme of $166 million to support Sri Lankan businesses and accelerate the country’s transition from economic stabilisation to sustainable growth.

This comprehensive country-level financing package aims to expand financial access for small and medium-sized enterprises (SMEs), with a focus on empowering 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.

This investment has been made strategically in three of Sri Lanka’s leading commercial private banks – Nations Trust Bank (NTB), Commercial Bank of Ceylon (CBC), and National Development Bank (NDB) – comprising a $50 million loan, $80 million in Risk-Sharing Facilities (RSFs), and $36 million in trade finance support.

While SMEs account for over 75 percent of all Sri Lankan businesses and 45 percent 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.

“As part of our One World Bank Group approach, IFC is dedicated to unlocking new inclusive financing streams and ensuring that prosperity reaches the front lines of Sri Lanka’s economy. Strengthening the country’s financial ecosystem means equipping banks with the capacity, tools, and confidence to extend finance where it is most needed – from expanding trade finance capabilities to modernising digital transaction systems. In partnership with three leading banks, NTB, CBC and NDB, our investments aim to build a foundation that empowers SMEs and communities to plan ahead, withstand future shocks, and participate fully in the opportunities that a competitive, inclusive economy can deliver,” said Imad Fakhoury, IFC Regional Division Director for South Asia.

IFC’s financing of $50 million to NTB, marks the first IFC-funded debt investment in Sri Lanka’s financial sector following the 2022 economic crisis. Of the total financing, $7.5 million or 15 percent is earmarked for on-lending to women-owned SMEs, enabling greater access to credit for women entrepreneurs.

Further, IFC has partnered with CBC and NDB to establish up to $80 million in RSFs. Under the facilities, which consist of $60 million for CBC and $20 million for NDB, IFC will share 50 percent of the principal losses incurred by the banks on a portfolio of eligible SME loans. This strategic intervention will help accelerate the banks’ strong commitment to expanding lending to SMEs, including to women-owned SMEs and agri-businesses. These facilities are supported by the IDA Private Sector Window Blended Finance Facility, through the Small Loan Guarantee Programme (SLGP), a programmatic approach to de-risking and scaling up financing for SMEs in eligible countries, including Sri Lanka.

IFC’s Global Trade Finance Programme (GTFP) will provide a $36 million trade finance facility guarantee to NTB and NDB, strengthening their trade finance capabilities. The trade finance lines consist of up to $20 million for NTB and $16 million for NDB and aim to enhance the banks’ ability to provide underserved sectors with access to global markets and supply chains.

Beyond financing, IFC will also deliver technical expertise to modernise NDB’s digital transaction banking and supply chain finance systems, directly expanding credit access for underserved SMEs. The upcoming advisory support also includes a comprehensive upgrade of NDB’s climate risk management framework, integrating climate considerations into the bank’s strategy and operations.

“As Sri Lanka rebuilds following multiple shocks – including the recent devastation caused by Cyclone Ditwah – IFC’s collaboration with leading financial institutions is instrumental in addressing urgent needs while laying the foundation for long-term competitiveness. These investments send a strong signal of confidence to the market,” said Gevorg Sargsyan, Country Manager for the World Bank Group in Sri Lanka and the Maldives. “The World Bank Group is committed to working across sectors and with partners to ensure our support has real impact when Sri Lanka needs it most. Our unwavering focus is on promoting sustainable and inclusive growth, so that every community has the opportunity to participate in and benefit from the country’s progress.”

These investments build on IFC’s 55-year history in Sri Lanka. IFC remains a long-term partner and shareholder in the country’s leading financial institutions, holding an equity interest in CBC and maintaining decades-long relationships with NDB and NTB.

Recently, IFC also helped strengthen Sri Lanka’s financial infrastructure by launching a Secured Transactions Registry (STR), enabling greater credit access for SMEs.



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Construction of Jet A-1 Aviation fuel pipeline and new oil tank complex at Muthurajawela begins under President’s patronage

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President Anura Kumara Dissanayake said that the Government’s objective is to maintain a strong state presence in the energy market while providing an efficient service to the people, adding that significant progress has been achieved towards this objective over the past two years and that a strong energy market that does not place a burden on the people is now being built in Sri Lanka.

The President made these remarks on Friday (02) morning  while attending the commencement of construction of the Jet A-1 pipeline system of the Ceylon Petroleum Corporation (CPC) and two new oil storage tank systems belonging to the CPC and the Ceylon Petroleum Storage Terminal Limited (CPSTL).

The projects are being implemented in line with the Government’s national objective of developing infrastructure in the energy sector, with the aim of ensuring the security of aviation fuel supplies, reducing supply costs and providing the capacity required to meet future demand for aviation fuel.

A dedicated pipeline and associated tank complex are being constructed to connect Muthurajawela with the Bandaranaike International Airport in Katunayake, with the aim of meeting the future demand of the country’s aviation sector, ensuring the security of aviation fuel supplies and reducing transportation costs.

Construction has commenced on five new Jet A-1 fuel storage tanks with a total capacity of 92,000 cubic metres. These comprise two large Jet A-1 tanks, each with a capacity of 30,000 cubic metres; two medium-sized tanks, each with a capacity of 15,000 cubic metres; and an additional tank with a capacity of 2,000 cubic metres. The fuel supply pipeline system will be connected to the airport through a 21-kilometre-long underground pipeline with a diameter of 10 inches from the Muthurajawela tank complex. The project is scheduled for completion within 30 months.

Meanwhile, as part of ongoing efforts to strengthen and expand storage and infrastructure facilities in the petroleum industry, the Ceylon Petroleum Storage Terminal Limited (CPSTL) commenced construction today of three new storage tanks at the Muthurajawela Terminal.

Upon completion, the three-tank system, comprising two tanks with a capacity of 15,000 cubic metres each and one tank with a capacity of 10,000 cubic metres, will provide an additional total storage capacity of 40,000 cubic metres.

This will further enhance the petroleum storage capacity of the terminal and support the continued development of the country’s petroleum infrastructure. The project has a contractual period of 18 months and is scheduled for completion in April 2028.

The tanks are being constructed in compliance with relevant international standards and recognised industry best practices, ensuring enhanced safety, reliability and operational efficiency. The additional storage capacity will strengthen the country’s fuel reserves, improve operational flexibility and support the reliable and uninterrupted distribution of fuel products to meet the country’s growing energy requirements.

Minister of Ports and Civil Aviation and Minister of Energy Anura Karunathilaka said,

“We are now in an era of energy transition. The world is rapidly moving towards the use of clean energy. The use of electric vehicles is very important in this regard, and our country is also now moving in that direction.

The use of solar energy is also important. We expect to add 1,200 megawatts of solar power capacity to the national grid by 2029.

As a country, we must focus not only on controlling fuel prices but also on controlling fuel consumption. The public also has a major responsibility in this regard.

It is particularly important to change our patterns of energy consumption. Greater energy security can be achieved by avoiding periods of high energy demand, shifting towards electricity use and using fuel-efficient vehicles, particularly electric vehicles.”

Chairman of the Ceylon Petroleum Corporation D. J. Rajakaruna said,

“We faced a major challenge due to the war in the Middle East. However, with the intervention of the President, relief was provided to the people and the situation was managed very effectively.

As a result, while diesel prices in the global market increased by 91%, the increase in Sri Lanka was only around 39.5%. While petrol prices in the global market increased by 80%, the increase in Sri Lanka was only around 41%.

Despite providing fuel at lower prices in this manner, the Corporation has recorded a profit of Rs. 28 billion this year. We also recorded a profit of Rs. 36 billion last year.

This may raise the question of why fuel prices are not being reduced when there are such profits.

However, we have used those profits to commence a number of infrastructure development projects at the institution.

These include adding the capacity of 11 tanks, including the construction of six tanks that had previously been abandoned, to increase fuel storage capacity; modernising our oil-filling section, which is more than 90 years old, and establishing a gantry system similar to that at Muthurajawela; laying two new pipelines for unloading fuel from the port to Kolonnawa; constructing a new pipeline to transport Jet A-1 fuel to Katunayake; and upgrading the pipeline system and laying new pipelines, among many other projects.

We are implementing these projects using those profits. Therefore, we have returned the benefits to the people through these investments.”

The Minister of Science and Technology, Professor Chrishantha Abeysena; Deputy Minister of Energy, Arkam Ilyas; Member of Parliament Kumara Jayakody; Secretary to the Ministry of Energy and Senior Additional Secretary to the President, Russell Aponso; foreign ambassadors; government officials including officials of the Ministry of Energy and the Ceylon Petroleum Corporation; and representatives of Sinopec were among those present at the occasion.

President’s Media Division (PMD)

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Lanka enters new phase of prosecutions as hurdles clear

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MONETABRIEF –The prosecution of high-profile individuals from the former Rajapaksa administrations is set to escalate this month with the clearing of legal hurdles and administrative bottlenecks, according to officials involved in the process.

Former president Gotabaya Rajapaksa’s attempt to secure an order preventing his arrest in connection with the Easter Sunday massacre was turned down by the Court of Appeal on Thursday.

An overseas travel ban has been in operation against Rajapaksa since June, but the Criminal Investigations Department made no move to question him. He instead filed a writ application seeking an order preventing his possible arrest.

President of the Court of Appeal Rohantha Abeysuriya noted that the court would not interfere with the investigative process. Any attempt by the court would amount to an obstruction of the investigation.

In an unrelated case, the same court rejected an application by opposition legislator Dilith Jayaweera seeking the quashing of a contempt charge filed against him by the Fort magistrate. The charges against Jayaweera and a few other opposition politicians are expected to be taken up in the coming week.

Jayaweera and other opposition politicians — Wimal Weerawansa, Udaya Gammanpila, Sugeeshwara Bandara, and Asanka Navaratne

— were hauled up over their remarks relating to the arrest of Suresh Sallay, the former head of the State Intelligence Service.

SLPP academic Mahinda Pathirana is also charged over his public comments about Sallay’s arrest in February under the draconian Prevention of Terrorism Act.

Former president Mahinda Rajapaksa’s son, legislator Namal Rajapaksa, is already in remand custody following his arrest in connection with three cases of bribery and money laundering relating to the 2013 Airbus deal and the Krrish property development in Colombo.

Although Namal has been granted bail in the Airbus money laundering charge, he is in custody until October 13 over the bribery charge relating to the same Airbus transaction. His arrest is under a provision of the Anti-Corruption Act that does not allow a magistrate to grant bail unless under exceptional circumstances.

Meanwhile, his mother Shiranthi Rajapaksa, who had been asked to report to the Financial Crimes Investigations Division on September 24, was a no-show and was yet to return from Singapore.

She had travelled overseas on September 16, and a family spokesman said she was handed the FCID summons at the departure lounge of Bandaranaike International Airport just before she boarded a flight to Singapore.

At the time, the family spokesman said she was due to return in three days.

“We will see greater momentum in the legacy cases in the coming weeks,” an official involved in the prosecutions said.

“We have cleared the legal hurdles to press ahead with more arrests,” he said.

“We are working on a few administrative issues which will be resolved very soon.”

The controversial prosecution of former President Ranil Wickremesinghe is dragging on without him being formally indicted since his arrest in August last year. The Fort magistrate has listed the case again for November 11, when the Attorney-General is expected to report on his decision regarding action against Wickremesinghe.

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Police warn: Court evaders face property seizure

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Police have reminded the public that courts have the power to take legal action against individuals who evade arrest or remain in hiding after warrants have been issued against them.

Police said that under Section 60 of the Code of Criminal Procedure Act No. 15 of 1979, a court could issue a written proclamation requiring a person evading arrest under a warrant to appear at a specified place and time.

The proclamation must allow the person at least 30 days to appear before court, Police said.

If the person fails to appear even after the proclamation has been issued, the court may take further action under Section 61 of the Act.

This includes issuing an order for the attachment of the movable or immovable property belonging to the person concerned.Police issued the reminder highlighting the legal measures available against persons who deliberately evade arrest and remain in hiding after warrants have been issued.

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