IFC Boosts Sri Lankan Economy with $166 Million Investment Initiative

The International Finance Corporation has unveiled a $166 million investment to bolster Sri Lanka's private sector, targeting SMEs, women-owned businesses, and agri-businesses. This initiative aims to enhance access to finance, drive inclusive growth, and create jobs, aligning with the World Bank Group's goals for sustainable economic development.

The International Finance Corporation (IFC), part of the World Bank Group, is launching a $166 million investment program to strengthen the private sector in Sri Lanka. This initiative focuses on the country's transition from economic stabilization to sustainable growth.

Targeting small and medium-sized enterprises (SMEs), the program prioritizes enhancing access to finance, particularly for women-owned businesses and those in the agri-sector. SMEs represent more than 75% of Sri Lankan businesses and employ 45% of its workforce, yet they face significant challenges in accessing credit. This partnership, aligned with both the World Bank Group and national priorities, aims to provide targeted assistance to help these businesses grow and thrive.

The IFC also plans to modernize digital transaction banking and supply chain finance systems, further expanding credit access to underserved SMEs. According to Allen Forlemu, IFC Regional Industry Director, this initiative is crucial for fostering resilience and inclusivity in Sri Lanka's economic recovery.

(With inputs from agencies.)