Sri Lanka gets US$ 75 million from the US to boost SME sector
Sri Lanka has recently received a boost to the country’s small and medium enterprises (SME) sector with the receipt of US$ 75 million from the United States (US).
The US International Development Finance Corporation (DFC) has reportedly awarded a US$ 75 million (around Rs. 15 billion) funding line to Sri Lanka’s NDB Bank to support its work in expanding and strengthening the SME sector, particularly among women business owners.
The funding agreement directs a portion of the loan to businesses that are owned by women, led by women, or provide a product or service that empowers women.
“Improving access to finance will enable women business owners in Sri Lanka to realise their full economic potential and will also help the Sri Lankan economy to grow,” US Ambassador to Sri Lanka Alaina B. Teplitz has been quoted as saying. “The United States is committed to ensuring women are employed by and in senior management positions in their own organisations,” she has added.
DFC is the development finance institution of the United States Federal Government, primarily responsible for providing and facilitating the financing of private development projects in lower- and middle-income countries.
According to reports, this assistance is part of DFC’s 2X Women’s Initiative, which aligns with NDB’s Banking on Women initiatives aimed at improving financial inclusivity, gender equity, and supporting women-led organizations.
OSL take:
Sri Lanka’s ongoing economic expansion has expanded opportunities for the development of the SME sector. Sri Lanka’s economy has shown great resilience through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. The funding lines secured by Sri Lanka for it’s SME sector and the many trade agreements as well as trade concessions enjoyed by the country have supported the growth of the country’s SME sector. Given the positive growth trends in Sri Lanka’s manufacturing and exports sectors, foreign businesses/investors could explore the growing opportunities in the country’s SME sector.
| Article Code : | VBS/AT/09072021/Z_4 |