Sri Lanka’s Sunshine Group receives US$ 5 million IFC investment
A US$ 5 million investment by IFC to Sunshine Consumer Lanka Ltd., which is a subsidiary of Sunshine Holdings PLC (Group), is to benefit Sri Lankan consumers with a greater number of food products on offer and moves to adopt international food safety standards, according to the IFC.
According to reports, the move marks IFC’s first local currency investment in Sri Lanka’s consumer goods sector and will allow Sunshine Consumer Lanka Ltd. to diversify its fast-moving consumer goods (FMCG) portfolio by expanding its operations from branded tea to confectionery, including healthy snacks.
This new investment is expected to support the domestic confectionary supply chain and help strengthen the overall competitiveness of the country’s FMCG sector.
“IFC’s partnership will allow us to grow further through diversification of our businesses and acquisition of a company to expand our presence in the retail sector,” Sunshine Holdings PLC Group Managing Director Vish Govindasamy has been quoted as saying. “We also plan to use this opportunity to improve product quality for consumers of confectionery, while increasing revenues and overall efficiencies for the Group’s distributors.”
“As Sri Lanka grapples with an economic downturn due to the Covid-19 crisis, strengthening the country’s resilience is critical to ensure a strong recovery,” IFC Acting Country Manager for Sri Lanka and the Maldives Victor Antonypillai has said. “Our investment in Sunshine Consumer Lanka Ltd will help expand consumer access to quality fast-moving consumer goods (FMCG) and support the domestic supply chain, while preserving jobs and ensuring sustainable growth.”
Local media reports further stated that IFC’s current investment is strategically aligned to IFC’s priorities in Sri Lanka, specifically focusing on improving competitiveness and job creation, as well as gender and rural inclusion.
The foreign investment received by a Sri Lankan business is indicative of the strength and growth of Sri Lanka’s private sector. The continuous expansion of the country’s economy and the improving ease of doing business environment have helped Sri Lankan companies record impressive growth rates resulting in foreign businesses/investors showing confidence in investing in local businesses. Also, Sri Lanka is fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka.
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