The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC have announced a joint investment of up to $40 million in South Asia Gateway Terminals (Pvt) Ltd. (SAGT) to modernize and decarbonize operations at the Port of Colombo, Sri Lanka’s premier maritime gateway. 

The financing aims to strengthen the port’s competitiveness, resilience, and sustainability, reinforcing its role as South Asia’s leading transshipment hub.

The package includes a sustainability‑linked loan of up to $20 million from IFC, with $8.57 million mobilized through IFC’s Managed Co‑Lending Portfolio Program (MCPP), alongside a parallel green loan of up to $20 million from HSBC. 

Funds will be used to acquire advanced twin‑lift ship‑to‑shore cranes, boosting productivity, operational reliability, and energy efficiency to meet rising global trade demands.

This marks IFC’s first sustainability‑linked financing for infrastructure in Sri Lanka and its return to the port sector after two decades.

 IFC first partnered with SAGT in 1999 to finance Sri Lanka’s first public‑private partnership container terminal, helping establish Colombo as a regional transshipment hub. 

The new investment is expected to raise quay‑side productivity by at least 11 percent, expand capacity for both transshipment and domestic traffic, reduce carbon emissions, and create more opportunities for women in the sector.

Sri Lanka’s strategic location at the crossroads of major shipping routes makes the Port of Colombo vital to global trade, with nearly half of worldwide container traffic passing nearby. The port contributes around 2.5 percent of GDP, anchoring the country’s logistics and trade integration.

“At SAGT, we are committed to shaping the future of Sri Lanka’s maritime industry through continuous investment in world‑class infrastructure that drives productivity, enhances operational excellence, and reinforces the Port of Colombo’s position as a leading regional transshipment hub. As IFC’s first sustainability‑linked financing for an infrastructure project in Sri Lanka, this milestone underscores our commitment to pioneering sustainable growth and setting a new benchmark for the industry,” said Steen Knudsen, CEO, SAGT.

“When trade moves, economies follow. As IFC’s first sustainability‑linked financing for infrastructure in the country, this investment demonstrates how innovative financing can modernize essential economic assets, accelerate decarbonization and drive long‑term, sustainable growth,” saidGevorg Sargsyan, Country Manager, World Bank Group in Sri Lanka and Maldives.

“Our international reach and global expertise support us to play a prominent role in financing the transition in the sectors where it matters most. Given its strategic importance to Sri Lanka, HSBC is committed to supporting the maritime and logistics sector as it modernizes and transitions to a lower‑carbon future. Our parallel green loan of up to $20 million will enable SAGT to upgrade critical port equipment, improving productivity and reliability while reducing energy consumption and CO₂ emissions. This is an example of how sustainable finance can deliver practical, measurable outcomes,” said Amesh Dissanayake, Director Banking, HSBC Sri Lanka.

The investment aligns with the World Bank Group’s Country Partnership Framework for Sri Lanka, supporting the government’s ambition to strengthen the nation’s role as a regional logistics hub and deepen integration into global trade networks. (Newswire)

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Sri Lanka’s Ministry of Plantation and Rural Infrastructure has entered into a strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group, and the Australian Government to boost the country’s coconut industry and accelerate export growth.

A cooperation agreement between the Ministry and IFC was signed today (28 Jan) by Ministry Secretary Prabath Chandrakeerthi and IFC’s South Asia Regional Manager Gregory Smith. 

According to the Ministry of Plantation, the initiative aims to enhance the global competitiveness of Sri Lanka’s coconut sector through targeted technical support, policy dialogue, and capacity building across the value chain.

Sri Lanka earned USD 1,233 million in export revenue from the coconut industry in 2025, making it a key contributor to the agricultural economy, rural employment, and foreign exchange.

IFC will work closely with the Coconut Research Institute (CRI), Coconut Cultivation Board (CCB), and Coconut Development Authority (CDA) to support farmers and stakeholders, with special focus on expanding cultivation in the Northern Province. 

The programme also seeks to integrate sustainable agricultural practices and gender-inclusive training.

Overall, the partnership is expected to help Sri Lanka meet rising international demand for coconuts while ensuring a sustainable future for local producers. (Newswire)

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Cabinet approval has been granted to sign the corporation agreement between Sri Lanka’s Export Development Board (EDB) and the International Finance Corporation (IFC) to provide necessary facilities to enable small and medium entrepreneurs to become exporters. 

It was proposed to sign a corporation agreement between EDB and the IFC to provide the facilities under the program for the development of new exporters of the EDB to turn small and medium entrepreneurs with export potential into exporters. 

The clearance of the Attorney General and the recommendations of the Ministry of Foreign Affairs have been received for the said corporation agreement. 

Accordingly, the Cabinet approved the proposal presented by the President, in his capacity as a Minister of Investment Promotion, to sign the proposed corporation agreement between the two parties. (Newswire)

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A new International Finance Corporation (IFC) report reveals that Sri Lanka surpasses regional counterparts in recruiting women at the entry-level in the banking sector, with women comprising 46 per cent of new recruits. 

The report, supported by the Women in Work program—a partnership between IFC and the Australian government—also highlights Sri Lanka’s leadership in board-level gender diversity, with women holding 27 per cent of board positions, compared to 20 per cent in Nepal and 14 per cent in Bangladesh.

The pioneering report, Women’s Advancement in Banking in Emerging South Asian Countries, aims to optimize opportunities that enable women to advance to senior roles in the banking industry across South Asia. This multi-country study, among the first of its kind in the region, focuses on private-sector commercial banks in Bangladesh, Nepal, and Sri Lanka, where women constitute 30 per cent of the banking workforce compared to the global average of 52 per cent.

Research conducted across seven leading private commercial banks in Sri Lanka, representing 41 per cent of the market share, forms the basis of insights on Sri Lanka.

While Sri Lanka’s banking industry is close to achieving parity in hiring women and is considerably ahead of other countries in terms of women’s share in the workforce, women’s progression does not match their career aspirations or progression rates for men. Representation drops from 40 per cent at entry-level to 27 per cent in middle management and further to 20 per cent in senior management roles.

“Investing in the potential of women leaders isn’t just about equality, it’s about unlocking the full spectrum of talent and driving sustainable growth–exactly what Sri Lanka needs for a resilient economic recovery,” said Imad N. Fakhoury, IFC’s Regional Director for South Asia. “Addressing the multifaceted challenges faced by female bankers requires comprehensive and collective action, rather than isolated interventions. We must tackle these barriers—whether policy, process, or culture–-related—in a targeted manner, creating an inclusive banking sector and driving greater economic growth.”

The report underlines how barriers such as lack of fair evaluations, sociocultural constraints and non-conducive work environments curtail women’s growth prospects in the Sri Lankan banking industry. While banks and policymakers have initiated several steps to improve women’s participation and career progression, stronger commitment from leadership is essential to create inclusive workplaces. The report reveals scepticism among many employees, including senior leaders and more than 50 per cent of middle managers, regarding the importance of female leadership for businesses to be competitive.

Previous research indicates that commercial banks with at least 15 per cent of women in senior management achieve up to 33 per cent higher return on equity. A growing body of evidence further links an increase in women’s representation in organizations to better performance on business metrics. 

“This comprehensive, data-based report is a strong starting point for the banking sector to improve long-term policies allowing women and men to achieve their potential. The sector – as well as other organizations – should take note of findings that show an increase in women’s representation in senior manager or higher roles delivers higher returns and stronger business outcomes,” said HE Paul Stephens, Australian High Commissioner for Sri Lanka.

The report also recommends targeted efforts in Sri Lanka to bolster women’s participation and advancement in commercial banking. These include establishing organizational commitment and accountability for gender diversity, building equitable and safe workplaces, and developing supportive ecosystems, networks, and professional development opportunities. These findings and recommendations aim to guide industry actors—C-suite leaders in commercial banks, policymakers, industry bodies, and investors—towards increasing women’s representation in leadership in the banking industry.

About IFC

IFC—a member of the World Bank—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, the IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org (Newswire)

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In a move to spur sustainable investments in Sri Lanka, the International Finance Corporation (IFC) and the European Union (EU) partnered with the Commercial Bank of Ceylon (CBC) to scale up green finance, supporting the country’s commitments towards a low-carbon economy.

The partnership, which is under the EU’s regional initiative ‘Accelerating Climate Smart and Inclusive Infrastructure in South Asia (ACSIIS)’, will help CBC set the foundations for net zero transition. With IFC’s technical support, CBC aims to grow its green financing portfolio by expanding into areas such as blue finance and green SMEs.

“The formulation of a robust climate transition strategy stands as a pivotal component within Commercial Bank’s strategic roadmap. We are delighted to engage the expert advisory services of IFC to effectively realize this critical initiative. As a leading advocate of sustainable banking practices, our primary objective is to expand our green portfolio while simultaneously advancing our journey towards achieving net zero emissions,” said Sanath Manatunge, Managing Director/ Chief Executive Officer of Commercial Bank.

Sri Lanka is among one of the most affected countries by extreme weather events. According to the World Bank, the country is expected to see a 1.2 per cent annual gross domestic product (GDP) loss by 2050 due to climate change. Addressing climate change risks is a national priority for Sri Lanka, with commitments to reducing greenhouse gas emissions and increasing renewable energy in electricity generation.

“IFC will continue to assist Sri Lanka in developing and scaling up green finance to support the country in its path to a net-zero future,” said Riccardo Puliti, IFC’s Vice President for Asia and the Pacific. “We are excited to strengthen our partnership with Commercial Bank of Ceylon (CBC), fostering a robust green finance market in the country.”

Over the years, the IFC has played a significant role in promoting sustainable and green finance in the country, including its support in developing the first national green finance taxonomy creating an enabling environment for climate-resilient investments. Financial institutions play a crucial role in driving green and sustainable finance. By scaling up its green finance portfolio, CBC will set an example for other financial institutions, signalling the importance of prioritizing climate-resilient investments.

“We are pleased to see a new initiative being launched today which advances the EU’s Global Gateway strategy here in Sri Lanka. Expanding the Commercial Bank of Ceylon’s green portfolio will provide better access to green finance, which is crucial for stimulating sustainable, economic growth. I am eager to see that additional investments in renewable energy, energy efficiency, and sustainable industries will lead to cleaner air, water, healthier living conditions and a more sustainable future for the people in Sri Lanka,” said Carmen Moreno, the Ambassador of the EU to Sri Lanka.

CBC has been a longstanding partner, dating back to 2003. IFC has supported CBC through multiple investments as well as through advisory support and currently holds a 14.45 per cent equity stake. In 2017, IFC invested $100 million in CBC to help the bank increase lending for renewable energy and energy efficiency projects in the country. CBC is also one of the three banks that received support from IFC through a $400 million cross-currency swap facility in 2023 to help facilitate the imports of essential goods such as food, medicines and fertilizers. Further, IFC and CBC joined forces to establish an early childhood development center in Batticaloa to help meet the demand for quality childcare services among employed parents in the Eastern Province of Sri Lanka as well.

About ACSIIS

The ACSIIS—Accelerating Climate Smart & Inclusive Infrastructure—is a program in South Asia, supported by the European Union, committed to promoting climate-resilient progress across the region. With a core focus on engaging the private sector and fostering sustainable and inclusive investments, ACSIIS prioritizes green finance, urban sustainability, agricultural innovation, and gender equality.

About IFC

IFC—a member of the World Bank—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, the IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org (Newswire)

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Small and medium enterprises (SMEs) in Sri Lanka are set to benefit from the newly established Secured Transactions Registry (STR), which aims to facilitate the use of moveable assets as collateral for loans while ensuring financial stability and fostering economic growth in the country, according to the International Financial Corporation (IFC) of the World Bank Group.

With technical assistance from the IFC, the new Secured Transactions Registry Act aims to address legal and operational challenges in the existing law. This is a collective effort led by the Credit Information Bureau (CRIB), in collaboration with the Central Bank of Sri Lanka and the Ministry of Finance.

SMEs comprise more than 75 per cent of enterprises while accounting for 45 per cent of employment and 52 per cent of the country’s GDP. Yet they cite access to finance as one of the key obstacles, hindering their growth potential. Against this backdrop, a robust legal framework to register security interests over movable assets will help unlock the full potential of small businesses in Sri Lanka through easier access to loans.

“The enactment of the new law and consequential amendments to 7 related laws is a critical step in developing a fully-fledged secured transaction framework to mortgage moveable assets in Sri Lanka that protects the rights of all types of regulated financial institutions, encouraging them to provide financing secured by moveable collateral,” said Pushpike Jayasundera, Director/General Manager, Credit Information Bureau of Sri Lanka (CRIB).

Globally, businesses are restricted from using movable collateral (such as machinery, inventory, accounts receivables, crops, and equipment) to obtain financing because many countries do not have functioning laws and registries to govern secured transactions. Secured transactions reform is also an avenue that can help encourage women—they are more likely to have movable assets to pledge—to start or expand a business.

“An effective credit infrastructure is key to strengthening Sri Lanka’s financial sector. IFC assisted CRIB in drafting the new law, which incorporated several rounds of consultations and expert input, thus ensuring that small businesses and entrepreneurs with few fixed assets can obtain the financing they need to thrive. We greatly appreciate the perseverance and commitment of all the stakeholders to see this legislation come to fruition,” said Alejandro Alvarez de la Campa, IFC Country Manager for Sri Lanka and Maldives.

IFC’s efforts to improve access to finance and foster inclusion in Sri Lanka span across several initiatives. Apart from supporting secured transactions regimes, IFC helped the Central Bank of Sri Lanka launch the country’s first national financial inclusion strategy and develop a financial literacy roadmap, strengthening financial consumer protection and increasing the uptake of digital finance.

About IFC

IFC—a member of the World Bank—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, the IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org (NewsWire)

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The International Finance Corporation (IFC) will provide a cross-currency swap facility to three of Sri Lanka’s leading national banks to help facilitate imports of essential goods, such as food, medicine, and fertilizers, most of which are traded in US Dollars.

The IFC said in a statement that it will provide USD 400 million over one year to the Commercial Bank of Ceylon, Nations Trust Bank, and Sampath Bank to support Sri Lanka amid the ongoing economic crisis.

The IFC is providing the cross-currency swap facility to the leading national banks that deal with over 30 per cent of Sri Lanka’s remittances and exports in a bid to support the private sector with critical financing, contributing to the country’s urgent need to stabilize the economy.

Sri Lanka has been facing its worst economic crisis in decades. The country’s output is estimated to have fallen by 9.2 per cent in 2022 and drop a further 4.2 per cent in 2023.

The IFC stated that the US$ 400 million facility will further support the banks’ financing of exports of goods and services for their clients while allowing them to make USD-denominated debt repayments. 

“In our almost 20-year relationship, IFC has engaged extensively with us to help grow our operations, including new opportunities in trade, climate finance, and small and medium enterprises, and was also instrumental in establishing our comprehensive women’s banking portfolio. This new facility will help us deploy our foreign currencies more efficiently while lowering our foreign currency exposure, resulting in effective risk mitigation,” said Sanath Manatunge, Managing Director/Chief Executive Officer of Commercial Bank of Ceylon.

“Sri Lanka’s economy continues to feel the severe US dollars (USD) funding constraints. IFC’s cross-currency swap facility will provide critical forex liquidity, helping support the private sector and encouraging longer-term funding flows to the market,” said Joon Young Park, IFC’s Portfolio Manager, Financial Institutions Group for South Asia. “We expect this financing to boost confidence in the investor community, and attract fresh capital inflows to support the Sri Lankan economy. We are also working on further plans to support our client banks with other long-term funding and advisory services in the future.”

This new swap facility follows the reactivation of trade finance lines with IFC partner banks—under the Global Trade Finance Program—in January 2023, which have been cautiously managing their risks in a challenging operating environment. With this facility, CBC and Sampath Bank will now be able to improve access to medium and long-term finance for its clients, helping local businesses sustain operations.

“IFC’s support through the cross-currency swap facility is timely, given the liquidity stress faced by the industry and the overall economy. This transaction will strengthen our hand in our efforts to increase foreign currency lending to our key client groups and thereby support economic revival across key industry sectors. By arranging this facility, IFC is providing a few selected banks including Nations Trust Bank, an additional avenue to manage liquidity risks which we believe is a positive signal for Sri Lanka at this current juncture. This transaction is also a testament to the long-standing relationship between IFC and Nations Trust Bank that spans over 20 years and we are thankful to IFC for its continued confidence in our Bank as a key banking sector partner in Sri Lanka,” said Hemantha Gunetilleke, Chief Executive Officer of Nations Trust Bank.

“The facility provided by IFC comes at a juncture where the Sri Lankan economy is facing a challenging time. The transaction will enable Sampath Bank to better manage our foreign currency holding by borrowing at lower rates and managing our foreign currency exposure while facilitating foreign currency lending to our customers across the whole economy. The transaction will also renew the longstanding relationship with IFC, which was spread across many business areas such as trade, foreign exchange, and financial services. Sampath Bank is also grateful for the trust placed by IFC by continuing to engage as a major business partner in Sri Lanka and is confident that this will lead to a long and fruitful relationship,” said Nanda Fernando, Managing Director of Sampath Bank PLC.

This facility is aligned with IFC’s work in Sri Lanka over the past five decades. This includes IFC’s strong countercyclical role in Sri Lanka during the COVID-pandemic, where IFC invested over $830 million, providing much-needed long-term capital and trade financing to help sustain businesses and preserve jobs. (NewsWire)

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