Sri Lanka’s CDB raises US$ 60 million in FY 2018-2019 to develop local SMEs
The Citizens Development Business Finance PLC (CDB) of Sri Lanka has reportedly raised a total of US$ 60 million in FY 2018/2019 to uplift and develop micro enterprises and SMEs in the country.
“Having already gained a first loan of US$ 6 million in 2013 which CDB disbursed to micro and SMEs in the country and paid back fully, the platform of trust and credibility given to CDB by foreign agencies is reiterated further with this larger tranche,” the company has stated in a media release.
The company has noted that working with three funding agencies whose objective is to develop and improve the micro and SME sectors in developing and emerging economies. CDB’s collective of US$ 60 million in the current financial year comprises US$ 10 million from the Belgian Investment Company for Developing Countries (BIO) and US$ 25 million each from the Dutch development bank of the Netherlands FMO and impact investment manager BlueOrchard Finance Ltd headquartered in Switzerland.
The timeline for repayment is spread over five years. The funds from FMO and BlueOrchard were arranged by Emerging Markets Global Advisory Ltd (EMGA).
Director Corporate Finance Roshan Abeygoonewardena has been quoted in the local media as saying, “With our aspiration of being a financial powerhouse, we have to look at the big picture and the big picture shows us that SMEs form the nucleus of growth. Micro entities and SMEs have contributed with great tenacity towards building this country and as a responsible corporate steward, it is vital that CDB fosters that tenacity to maximize on the immense potential these SMEs and micro enterprises possess.”
OSL take:
The announcement that Sri Lanka’s CDB had raised US$ 60 million in the FY 2018/2019 to develop local micro enterprises and SMEs indicates the strength of the country’s private sector. The strength of Sri Lanka’s private sector is encouraging for foreign businesses/investors to explore possibilities of setting up joint ventures with local businesses. On the other hand, foreign businesses/investors could also explore business/investment opportunities in developing Sri Lanka’s micro enterprises and SMEs given the country’s strong trade ties with many countries.
| Article Code : | VBS/AT/21302019/Z_4 |