The International Finance Corporation (IFC) has announced a US$166 million investment package to boost small and medium-sized businesses in Sri Lanka and help the country move from economic recovery to sustainable growth, the organization said. The package, IFC’s first major financial-sector investment in Sri Lanka since the 2022 crisis, will support lending for SMEs — especially women-led businesses and agricultural enterprises — and strengthen trade and digital banking systems.
The financing includes a US$50 million loan to Nations Trust Bank, US$80 million in risk-sharing facilities with Commercial Bank of Ceylon and National Development Bank, and US$36 million in trade finance guarantees for NTB and NDB. The goal, IFC said, is to help banks reach underserved businesses, boost job creation, and make credit more accessible. About 15 percent of the NTB loan will be lent directly to women-owned enterprises.
“SMEs are the backbone of Sri Lanka’s economy, providing most jobs but struggling to access finance,” said Allen Forlemu, IFC’s Regional Industry Director for Asia and the Pacific. “During crises, IFC steps in when private capital retreats. This investment will help banks lend to small businesses, women entrepreneurs, and farmers — groups essential to the country’s recovery and long-term resilience.”
The initiative is supported by the World Bank Group’s IDA Private Sector Window and the Small Loan Guarantee Program, which share lending risks to encourage local banks to back smaller clients. IFC will also work with partners to modernize NDB’s digital banking systems and integrate climate risk management across its operations.
“This partnership shows confidence in Sri Lanka at a crucial moment,” said Gevorg Sargsyan, World Bank Country Manager for Sri Lanka and the Maldives. “By strengthening financial institutions and improving access to capital, we can help communities recover faster and build a more resilient, inclusive economy.”
IFC’s investments build on its 55-year engagement in Sri Lanka, supporting financial inclusion, trade, and job creation. The institution recently helped launch a Secured Transactions Registry to expand credit access for small businesses — another key step toward making Sri Lanka’s banking system more inclusive.
