The International Finance Corporation (IFC), part of the World Bank Group, has launched a $166 million investment program to strengthen Sri Lanka’s private sector and support the country’s transition from economic stabilization to sustainable growth.
The program is designed to expand access to finance for small and medium-sized enterprises (SMEs), with particular focus on women-owned businesses and the agri-business sector, promoting inclusive growth and generating employment opportunities for underserved segments of the economy.
The investment will be delivered through three leading private banks in Sri Lanka—Nations Trust Bank (NTB), Commercial Bank of Ceylon (CBC), and National Development Bank (NDB)—and includes a $50 million loan, $80 million in Risk-Sharing Facilities (RSFs), and $36 million in trade finance support.
SMEs make up over 75% of Sri Lankan businesses and provide about 45% of total employment, yet access to credit remains a major barrier to growth. IFC noted that the program aligns with national development priorities and the World Bank Group’s strategy to enhance economic resilience and long-term growth.
“SMEs are the undisputed backbone of Sri Lanka’s economy, and their growth is essential for creating jobs,” said Allen Forlemu, IFC Regional Industry Director for the Financial Institutions Group in Asia and the Pacific. He added that IFC plays a counter-cyclical role during economic stress, supporting the financial sector when private capital retreats, enabling recovery and more inclusive growth.
Imad Fakhoury, IFC Regional Division Director for South Asia, emphasized that the initiative reflects the World Bank Group’s commitment to inclusive financing under its “One World Bank Group” approach. Strengthening the financial ecosystem will help banks extend credit where it is most needed, including trade finance and digital transaction systems.
Through these partnerships, IFC aims to empower SMEs, support communities, and help Sri Lanka’s economy withstand future shocks while fostering competitiveness and inclusivity.
