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Colombo, May 29, 2006
-The International Finance Corporation, the private sector arm of the World Bank Group, launched the SouthAsia Enterprise Development Facility (SEDF) for Sri Lanka and Maldives, a multidonor technical assistance program for small and medium enterprise development, in Colombo today.
The overall aim of IFC-SEDF is to improve the business environment for SMEs, contributing to broad-based economic growth and to sustainable poverty reduction. The new program will operate under the umbrella of the existing SEDF program and IFC South Asia, which has its regional hub in New Delhi.
Iyad Malas, IFC’s Director for South Asia, elaborated on the strategic approach that the IFC-SEDF facility will adopt in Sri Lanka and Maldives. ”The program will serve as a catalyst for accelerating the growth rate of the SME sector in these countries. Our strategy will have three important components: its activities and interventions will aim at enhancing access to finance, help improve performance and competitiveness of the sector, and facilitate the establishment of enabling conditions for SME development. We will work in partnership with the governments, the private sector, donor partners, the World Bank Group, and other development partners to identify and address the constraints to SME development. The facility will also complement the development of an effective business support infrastructure already started by the governments and other bilateral and multilateral agencies,” he said.
Welcoming the launch, Laurence Carter, IFC’s Director for Small and Medium Enterprises, said, “The SEDF program’s strategic direction is based on extensive studies and consultations with private sector firms, business associations, financial entities, governments, and other developmental agencies, including nongovernmental organizations. SEDF is one of IFC’s 11 regional SME facilities in emerging markets, with combined annual spending of nearly $60 million and over 900 people in the field. These facilities are strategically placed to serve countries and regions where there is momentum for reform.”
Anil Sinha, General Manager of SEDF, explained, ”The program will apply best practices, tools, and techniques for SME development in Sri Lanka and Maldives by leveraging the existing knowledge and resources from IFC’s SME programs from around the world and, more specifically, from Bangladesh. IFC-SEDF will select projects and specific areas of intervention where it can add distinctive value. The intention is to build local capacity, through partnerships with private, semi-private, and government entities wherever possible, as well as to promote sustainability.”
Speaking of the geographic expansion of the SEDF program, Gilles Galludec, who will lead the facility’s office for Sri Lanka and Maldives in Colombo, noted, “The program will initially focus on all areas of Sri Lanka except the northeast; it will expand to the northeast as part of the donor-supported reconstruction process as peace progresses. In Maldives, the program will target key interventions mainly in the capital, Male, in view of the small size and spread of the Maldives economy and the high costs of program delivery.”
About SEDF & IFC
The SouthAsia Enterprise Development Facility (SEDF) is a multidonor facility managed by the International Finance Corporation, the private sector arm of the World Bank Group. Launched in 2002, SEDF is based in Dhaka, Bangladesh, and focuses on the needs of the small and medium enterprises in Bangladesh, Bhutan, Nepal, and Sri Lanka, as well as northeast India. Its objective is to reduce poverty through SME development. For more details, visit
www.sedf.org
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SEDF is one of 11 regional SME facilities operated by IFC with donor support. SEDF designs and undertakes interventions to identify and help overcome key obstacles that SMEs face in business development and operations. It focuses in three core areas: access to finance, value addition to firms, and the business enabling environment. SEDF works to promote an overall conducive environment for the growth of SMEs through trade facilitation, simplification of business regulatory procedures, and capacity-building for business membership organizations. It also emphasizes gender and environmental and social compliance.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more details, log on to
www.ifc.org
.
International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates activities with other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
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