The US Embassy in Sri Lanka announced today that the US International Development Finance Corporation (DFC) Board of Directors has approved $120 million in new loans to help the Sri Lankan economy grow and prosper.
“For seventy years, the United States has provided foreign assistance, loans, and trade opportunities to help grow the Sri Lankan economy and support the Sri Lankan people,” said Julie Chung, United States Ambassador to Sri Lanka. “Today’s announcement is good news for the private sector because the DFC’s new investments of $120 million will reach small and medium-sized businesses and help to provide equity, jobs, and futures.”
Among the projects announced today is a $100 million direct loan to the Commercial Bank of Ceylon, Sri Lanka’s leading commercial private bank, to expand lending to micro-, small-, and medium-sized enterprises (MSMEs) and close the credit gap for women-owned businesses, which account for 25% of MSMEs in the country.
DFC also announced a $15 million loan to BPPL Holdings PLC, a polyester yarn manufacturer that uses recycled plastic materials. The loan will help to increase production and strengthen Sri Lanka’s recycling infrastructure as part of the country’s efforts to reduce plastic waste.
A $5 million loan was also announced today for MA’s Tropical Food Processing (Private) Limited, a sustainable food company, to finance its expansion and expand its supplier network.
This initiative will strengthen Fair Trade practices in Sri Lanka while also creating new jobs, with a focus on increasing women’s employment.
These new loans add to DFC’s existing portfolio of nearly $300 million in funding for the MSME sector in Sri Lanka over the last two years.
“The diverse set of transactions announced today will have a real impact across a variety of sectors and development challenges,” DFC CEO Scott Nathan said.
“These transactions demonstrate how DFC strategically catalyzes private capital in the most critical places.”
DFC collaborates with the private sector around the world to finance solutions to critical challenges, investing in areas such as energy, health care, critical infrastructure, and technology.
DFC also lends money to small businesses and women entrepreneurs in order to help them create jobs in emerging markets.
DFC investments adhere to strict guidelines that protect the environment, human rights, and worker rights.
These announcements may be subject to congressional notification and other administrative approvals in Washington.
When the funds are ready for distribution, more information will be made available.