Sri Lanka’s Commercial Bank to receive US$ 50 million from UK’s CDC Group
Sri Lanka’s Commercial Bank has managed to secure a US$ 50 million loan from the CDC Group to facilitate lending to Small and Medium-sized Enterprises (SMEs) and support climate projects in Sri Lanka.
CDC Group is the UK’s development finance institution and impact investor.
Commercial Bank has stated that CDC’s investment will enable the Bank to further strengthen financial support to local SMEs in need of funding, enabling them to access necessary working capital to strengthen their operations, maintain employment, and grow their business.
The investment is to help increase social and financial inclusion across communities which will in turn drive economic activities throughout the country.
CDC’s investment is to also provide capital that will allow Commercial Bank to extend credit toward renewable and climate-supportive projects.
The loan facility from CDC will also help Commercial Bank increase support for clean energy resources development and energy efficiency initiatives.
British Acting Deputy High Commissioner to Sri Lanka Bruce Bucknell has been quoted as saying, “We welcome today’s announcement as a step towards financial empowerment for small businesses and communities throughout Sri Lanka. CDC and Commercial Bank of Ceylon’s partnership offers a blueprint for investments that could transform Sri Lanka’s economic future. This investment demonstrates the UK’s continued commitment to supporting Sri Lanka socioeconomic development and our shared ambitions for a sustainable future through clean energy transition.”
The funding secured by Sri Lanka’s Commercial Bank from a UK financial institution is indicative of the strength of the country’s banking sector, especially in the private sector. Sri Lanka is engaged in an economic expansion programme further supported by an aggressive development programme that has placed the island as an emerging business destination in the South Asian region. The country’s geographical positioning and the many trade agreements as well as trade concessions enjoyed by Sri Lanka have also helped boost the island’s attraction as a growing business hub. Given Sri Lanka’s progress and the strong banking system, foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka.
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