Sri Lanka’s NDB receives US$ 75 million from United States Development Finance Corporation
Sri Lanka’s NDB Bank has reportedly announced that it has secured a long term funding line of US$ 75 million from the Development Finance Corporation (DFC) of the United States to further the bank’s support for the small and medium businesses and infrastructure funding during challenging times.
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 and the funding line comes at a time when the country requires long-term, stable funding to help the economy recover from the effects of the pandemic.
Further, the investments the group is making in technology, including, but not limited to, virtual KYC and digital payment platforms, will improve financial inclusivity and enable SME’s to seamlessly transact with NDB, the Daily FT has stated.
According to reports, NDB Bank, is the fourth largest private bank in Sri Lanka, recognised as the best bank in Sri Lanka 2020 by The Banker UK, and best bank in Sri Lanka 2021 by Global Finance USA, has been at the forefront of supporting MSMEs, women-led enterprises and project finance.
“DFC is proud of our investment in National Development Bank, a leader in SME and gender-lens investing in Sri Lanka,” DFC Office of External Affairs Vice President and Global Gender Equity Initiatives Head Algene Sajery has been quoted as saying.
“We applaud NDB Group’s ongoing commitment to unlocking the full economic potential of women in Sri Lanka, both by ensuring women are employed by and in senior management positions in their own organisation, and by committing to lending a portion of DFC’s loan to businesses that are owned by women, led by women, or provide a product or service that empowers women.”
NDB Group CEO Dimantha Seneviratne has reportedly said, “While this is not the first time NDB has raised significant foreign funding, this is the first time we are borrowing from a US-based Development Finance Institution whose development aspirations are aligned to that of NDB. Further the timing of the facility cannot be better, coming at a critical juncture in the economy impacted by the third wave of the pandemic.”
He has further been quoted as saying that NDB was at the forefront in supporting the SME sector in these challenging times, disbursing the fourth largest quantum of Saubagya loans. This facility will help NDB support this vital sector of the economy with longer term funding at their time of need.
NDB had recently tied up as the main banking partner for SL@100 initiative funded by USAID, which promotes SMEs to upgrade to higher levels through strategic alignment initiatives.
OSL take:
The long term funding line secured by Sri Lanka’s NDB is indicative of the level of confidence the international funding agencies have on the country’s banking sector as well as the potential for growth. Despite the many challenges posed by the global Covid 19 pandemic, Sri Lanka’s banking sector has shown resilience and is on the path to recovery while supporting the country’s businesses and investments. With Sri Lanka fast becoming a business hub in the South Asian region, the country’s banking sector has also shown an expansion. Therefore, foreign businesses/investors exploring opportunities in Sri Lanka could do so more confidently knowing that the country has a strong banking sector.
| Article Code : | VBS/AT/06072021/Z_3 |