COLOMBO, SRI LANKA, February 25, 1999 – The International Finance Corporation will make its first equity investment in a commercial bank in Sri Lanka by providing US$1.1 million to Nations Trust Bank, a new private sector bank being set up by John Keells Holdings (JKH) and Central Finance (CF).
Mr. Jemal-ud-din Kassum, IFC Vice President for Investment Operations noted at the signing that the presence of a strong commercial bank would increase competition in a sector dominated by government banks and stimulate greater efficiency, innovation and growth in banking. He added that, in addition to traditional commercial banking, Nations Trust Bank would focus on housing finance.
The two sponsors are well-established, publicly listed companies. JKH, a diversified company, is involved in financial services, food and beverages, transportation, plantations and leisure and CF is the largest finance company in Sri Lanka.
IFC, which has been investing in Sri Lanka since the early 1970's, recently opened an office in Colombo. During his visit, Mr. Kassum met with Deputy Finance Minister G.L. Peiris, the Central Bank Governor and other senior officials and discussed new investment opportunities in health care, information technology, education, financial services, and infrastructure.
IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.
