CDC Group (“CDC”), the UK’s development finance institution and impact investor, has provided a US $50 million loan to Commercial Bank of Ceylon (“ComBank”), the largest private commercial bank in Sri Lanka. The loan will facilitate lending to small and medium-sized enterprises (SMEs) and support climate projects in Sri Lanka.
SMEs generate 80 per cent of businesses and provide about 35 per cent of jobs in Sri Lanka. Yet, these businesses struggle to access medium and long-term finance, a funding issue which is further exacerbated by the impact of Covid-19 on the country’s economy. With CDC’s investment ComBank will be able to target financial support directly at local SMEs most in need of funding, enabling them to access necessary working capital to strengthen their operations, maintain employment, and grow their business. By focusing lending toward eligible businesses and customers, the investment will help increase social and financial inclusion across communities which will in turn drive economic activities