IFC, a member of the World Bank Group, is partnering with Sampath Bank PLC to provide trade financing for Sri Lankan exporters to help them access global markets and boost the country’s trade.
IFC will support the bank’s trade-finance business by partially or fully guaranteeing the payment risks of its clients. IFC’s Global Trade-Finance Program promotes trade among emerging markets, complementing the capacity of banks to ensure liquidity of export-oriented small and medium enterprises. The program’s network enables local financial institutions offer competitive financing by tying up with major international banks.
“IFC’s trade-finance facility will support Sampath Bank’s capacity to help small businesses tap growth opportunities,” said Aravinda Perera, Managing Director of Sampath Bank. “Wider access to IFC’s global network of partner banks will facilitate trading transactions of our customers at competitive pricing.”
Global trade is essential for growth and is a key driver of integration and opportunities for local enterprises. Financing trade is fundamental to movement of goods along all stages of the supply chain and can have a strong development impact in emerging economies.
“This trade finance facility with Sampath Bank is part of IFC’s continued commitment to strengthen Sri Lanka’s banking sector,” said Amena Arif, IFC Country Manager for Sri Lanka and Maldives. “The facility will help small exporters access over 100 emerging-market countries.”
Since its inception, GTFP has covered over 25,000 trade transactions and supported over $27 billion in emerging market trade without a single loss. GTFP has committed over $11 billion in some of the world’s poorest countries that are eligible to borrow from the World Bank’s International Development Association.
Sri Lanka is a priority country for IFC. IFC’s committed portfolio in Sri Lanka is now $230 million and covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and healthcare. IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance, and by offering capacity-building and training opportunities.