News
IFC invests $166 Mn in 3 Lankan banks to support businesses
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.
News
Construction and Concrete waste recycling centre opened in Ekala under the Clean Sri Lanka programme
A recycling centre for the management of construction and demolition (C&D) waste, established in line with the Clean Sri Lanka national programme, was declared open this morning (08) at the Ekala Industrial Zone.
The Clean Sri Lanka Secretariat has allocated Rs. 200 million for this project. Established within the precast yard premises belonging to the State Engineering Corporation under the Ministry of Housing, Construction and Water Supply, the project marks a significant step towards a sustainable environmental transformation in Sri Lanka’s construction sector.
Globally, the construction industry accounts for 40% of total waste generation and 25% of carbon emissions. In Sri Lanka, nearly 300 tonnes of such waste are collected daily from the Western Province alone.
Until now, the indiscriminate disposal of such debris has contributed to soil pollution, water contamination and increased flood risks. Under this project, however, such waste will be transformed into valuable raw materials through modern technology. This initiative is expected to minimise the depletion of natural resources while significantly reducing construction costs.
The centre, which is being operated with the full involvement of the State Engineering Corporation, has been provided with machinery and land valued at Rs. 350 million. In addition to the recycling plant, which has a capacity of 200 metric tonnes per hour, a modern laboratory and an administrative building have also been constructed. Under the “Clean Sri Lanka” programme, Rs. 200 million has been allocated for the project, of which Rs. 150 million has already been released.
There are also plans to expand research activities in the future by engaging engineering faculties of State universities in the programme. The support and contribution of all construction contractors and stakeholders are expected in building a circular economy within the construction sector while safeguarding natural resources for future generations.
Minister of Housing, Construction and Water Supply Dr Susil Ranasinghe, Deputy Minister of Environment Anton Jayakody, Deputy Minister of Housing, Construction and Water Supply T.B. Sarath, Deputy Minister of Labour Mahinda Jayasinghe, Member of Parliament Najith Indika, Additional Secretary to the President at the Clean Sri Lanka Secretariat S.P.C. Sugeeshwara, Additional Director General of the Clean Sri Lanka Secretariat Kapila Senarath, Director (Environmental) of the Clean Sri Lanka Secretariat Anjula Premarathna, Chairman of the State Engineering Corporation Engineer Neranjan Fernando and Deputy General Manager of the State Engineering Corporation Charuka Hettiarachchi, along with several others, were present at the occasion.
News
President of the Socialist Republic of Vietnam pays floral tribute to the Ho Chi Minh Statue
President of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam, To Lam, who is on a State visit to Sri Lanka at the invitation of President Anura Kumara Dissanayake, paid floral tribute this morning (08) to the statue of Ho Chi Minh situated within the premises of the Colombo Public Library.
Upon arriving at the Colombo Public Library, President To Lam was warmly received by President Anura Kumara Dissanayake, while a group of children holding the national flags of both countries stood along the route to welcome the Vietnamese President.
Following the floral tribute to the Ho Chi Minh statue, President To Lam also viewed a collection of paintings created by schoolchildren.
Thereafter, the Vietnamese President attended the ceremony marking the commencement of the expansion of the “Vietnam–Ho Chi Minh Space” located at the Colombo Public Library, where he also viewed a collection of historical photographs on display.
On the occasion, Chief Librarian of the Public Library, Mrs Varuni Gangabadarachchi, briefed those present on the architectural plans prepared for the renovation and expansion project of the Ho Chi Minh Space. A donation of US$50,000 for the project was also presented to the Mayor of Colombo, Mrs Vraie Cally Balthazaar, by Nguyen Huu Nghia, Member of the Central Committee of the Communist Party of Vietnam and Auditor General of the State Audit Office of Vietnam.
Minister of Environment, Dr Dhammika Patabendi, Mayor of Colombo Mrs Vraie Cally Balthazaar, Deputy Mayor Hemantha Werakoon and several others were also present at the occasion.
[PMD]
News
Urgent reforms needed to eradicate drug menace, says President
President Anura Kumara Dissanayake has instructed officials to swiftly introduce all necessary reforms, including amendments to existing laws, in order to eliminate the drug menace from the country.
The President issued these instructions while attending the meeting of the “Ratama Ekata” National Steering Council convened on Thursday (07) morning at the Presidential Secretariat to discuss efforts aimed at eradicating the drug menace.
He also directed the relevant authorities to take all necessary steps to expedite the process of destroying seized narcotics as quickly as possible under proper legal procedures, thereby preventing them from re-entering society and to accelerate the process of punishing offenders.
The President emphasised the need to speed up this process in order to build public confidence, as well as the confidence of the teams engaged in operations, noting that the successful implementation of the “Ratama Ekata” national initiative would thereby be strengthened through collective participation.
The progress of anti-narcotics operations carried out under the “Ratama Ekata” national initiative, including raids and arrests, was extensively reviewed at the meeting. Officials pointed out that raids related to narcotics had increased by 80% since the launch of the programme.
Since the launch of the “Ratama Ekata” national operation on 30 October 2025, authorities have seized 5,437.457 kilogrammes of cannabis, 1,936.325 kilogrammes of heroin, 1,991.414 kilogrammes of crystal methamphetamine (“ice”), 271.724 kilogrammes of cocaine, 1,574,895 narcotic pills, and 629,988 illicit cigarettes. A total of 168,460 suspects have also been arrested in connection with these offences.
The current progress of the legal amendments required to eradicate the narcotics menace from the country was reviewed at the meeting, and it was noted that steps had been taken to submit the Rehabilitation (Amendment) Bill No. 54 of 2007 to the Cabinet in due course. Discussions were also held regarding the rehabilitation process, the strategies that could be adopted in that regard, and the measures taken to develop related facilities.
It was further revealed that, at Divisional Secretariat level, 25 families most severely affected by narcotics in each division had been selected for attitude development programmes. The President stressed the importance of implementing all such programmes through local religious centres.
The President also made clear that anti-drug awareness programmes should not merely be limited to conducting awareness campaigns, but should include continuous follow-up to assess whether the message had been properly communicated to society and to monitor progress. He highlighted the importance of maintaining this mechanism continuously with the involvement of religious leaders, including members of the Maha Sangha in the respective areas.
The President also inquired into measures being taken to establish a separate court for narcotics-related cases, expedite the receipt of Government Analyst reports, and accelerate the filing of cases.
He also stressed the urgent need for a rapid programme to expedite legal proceedings and rehabilitation processes concerning inmates imprisoned for narcotics-related offences, in order to ease prison overcrowding.
The Inspector General of Police also briefed the meeting on investigations and the current status relating to Buddhist monks who were recently arrested in connection with narcotics offences.
The President was further briefed on the progress of programmes jointly implemented by the Ministry of Education and the Women and Children’s Bureau to curb organised efforts to draw schoolchildren into narcotics use. He was also informed about community-based programmes planned in conjunction with the International Day Against Drug Abuse and Illicit Trafficking, which falls on 26 June.
Among those present at the meeting were the Anunayaka Theros of the Malwathu and Asgiri Chapters, senior clergy representing several Buddhist Nikayas, Christian priests, Hindu Kurukkals, Muslim religious leaders, senior government officials including Secretary to the President Dr Nandika Sanath Kumanayake, ministry secretaries, senior tri-forces commanders, Inspector General of Police Priyantha Weerasooriya, heads of relevant institutions, senior security officials, and representatives of the “Ratama Ekata” National Steering Council.
[PMD]
-
News4 days agoCJ urged to inquire into AKD’s remarks on May 25 court verdict
-
News2 days agoMIT expert warns of catastrophic consequences of USD 2.5 mn Treasury heist
-
News5 days agoUSD 3.7 bn H’tota refinery: China won’t launch project without bigger local market share
-
News6 days agoEaster Sunday Case: Ex-SIS Chief concealed intel, former Defence Secy tells court
-
News7 days agoTen corruption cases set for court in May, verdict ordered in one case – President
-
Business6 days agoDialog Surpasses 1,000 5G Sites, Strengthening Nationwide 5G Coverage
-
Editorial5 days agoDeliver or perish
-
Editorial2 days agoClean Sri Lanka and dirty politics
