Announced by the International Finance Corporation (IFC). $166 million high-impact investment program It supported Sri Lanka’s private sector and demonstrated renewed confidence in the country’s transition from economic stability to stability. inclusive and sustainable growth.

Country-level financing package goals Small and medium-sized enterprises (SMEs)The focus is on the core of the Sri Lankan economy. Women-owned businesses and agribusinesstwo sectors important for job creation and post-crisis recovery. More than the percentage of small and medium-sized enterprises 75 percent of business, 45 percent of employment.yet still face severe constraints in access to credit.

Strategic capital for the financial system

Investments are being deployed through: Three major private banks in Sri Lanka—Nations Trust Bank (NTB), Ceylon Commercial Bank (CBC), National Development Bank (NDB)— and is structured to expand lending and reduce risk in a fragile post-crisis environment. Package includes:

• $50 million loanincluding IFC First fixed income investment in Sri Lanka’s financial sector since the 2022 crisis

• $80 million for Risk Shared Facility (RSF) Reduce the risk of small business financing

• $36 million in trade finance guarantees Enhance access to global markets

Of the total loan amount, 15 percent ($7.5 million) is specifically allocated for Small businesses run by womencontribute to resolving persistent gender disparities in access to finance.

“SMEs are the undisputed backbone of Sri Lanka’s economy,” he said. Allen ForemIFC Asia Pacific Financial Institutions Regional Industry Director. “By helping banks direct capital to women-led businesses, smallholder farmers and sectors that drive recovery, we will enable Sri Lanka not only to recover, but to move forward with greater resilience and inclusiveness.”

Reduce the risk of large SME loans

The main innovations of this program are: risk sharing facilityIFC will absorb based on this 50% of potential loss About the eligible small business loan portfolio—$60 million at CBC, $20 million at NDB. is supported by IDA Private Counter Small Loan Guarantee SystemThe scheme is designed to enable lending to small and medium-sized enterprises that banks consider too risky, such as agribusinesses and women-led businesses.

In parallel, IFC Global Trade Finance Program (GTFP) provide $36 million guaranteed-to $20 million to NTB, $16 million to NDB—Strengthen trade finance capacity and enable underserved businesses to participate in regional and global supply chains.

Digital, climate change and advisory support

Beyond capital, IFC combines financing. Technical advisory support Modernize Sri Lanka’s financial ecosystem. This includes upgrades NDB’s digital transaction banking and supply chain finance platformdirectly expanding credit access for small and medium-sized enterprises and strengthening banks’ capabilities. Climate risk management framework Integrating climate considerations into strategy and operations.

“As part of One World Bank Group’s approach, IFC is unlocking inclusive financial flows, giving banks the tools and confidence to extend lending where it’s needed most,” he said. Imad FakhouryRegional Director of IFC South Asia.

signals to the market

The announcement comes as Sri Lanka continues to recover from multiple shocks, including the 2022 economic crisis and recent climate-related disasters.

“These investments send a strong signal of confidence to the market,” he said. Gevorg SargsyanWorld Bank Group Country Manager for Sri Lanka and Maldives. “We are focused on sustainable and inclusive growth so that all communities benefit from Sri Lanka’s recovery.”

The new program will be built on IFC’s 55-year partnership with Sri LankaThis includes our equity participation in CBC and our long-standing relationships with NDB and NTB. This also follows recent IFC support to strengthen financial infrastructure. secure transaction registryThis is already improving access to credit for small and medium-sized enterprises.

As Sri Lanka seeks to move beyond stabilization, the IFC-supported package stands to: Small businesses, women entrepreneurs, agribusiness It is at the heart of this country’s next phase of growth.