Colombo, Sri Lanka, August 4, 2006
—The International Finance Corporation’s South Asia Enterprise Development Facility and DFCC Bank have signed a Memorandum of Understanding to work jointly to support the growth and development of small and medium scale enterprises in Sri Lanka.
DFCC bank is the fifth financial institution to partner with IFC’s SME development program, following earlier agreements with Commercial Bank of Ceylon, Hatton National Bank, NDB Bank, and Sampath Bank. SEDF has signed a similar agreement with the Maldives Finance Leasing Company, an IFC portfolio company, with a view to extend the program in the Maldives.
Gilles Galludec, IFC’s Country Manager and Program Manager for SEDF in Sri Lanka and the Maldives, said at the signing, “Through this program, IFC works closely with partner financial institutions in four areas that are critical to building their SME financing operations: operating efficiency, asset quality, the services they offer, and volume and profitability. SEDF will share IFC’s global experience in financial markets, facilitate exposure to international best practices, and develop access to finance for SMEs.”
Nihal Fonseka, CEO of DFCC Bank, said, “Access to finance and capacity building are key growth constraints the SME sector faces in Sri Lanka. With assistance in building capacity and other technical support from SEDF, we will be able to play an important role in extending financial products and services to the SME sector in the country.” Lionel Somaratne, Program Advisor, SEDF was also present at the signing.
SEDF Sri Lanka-Maldives is a multidonor funded facility managed and operated by the International Finance Corporation, the private sector arm of the World Bank Group. It is funded by IFC and the governments of the Netherlands and Norway with the objective of promoting the growth of small and medium enterprises in Sri Lanka and the Maldives. SEDF increases SMEs’ access to financing and quality business development services. It is also involved in value addition to firms and the creation of an enabling business environment.
The International Finance Corporation is the private sector arm of the World Bank group and is headquartered in Washington DC. IFC coordinates its activities with the 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.
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 international finance markets and 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 commited portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit
www.ifc.org
.
