Category: Daily Financial Times

Browns EV, the electric mobility arm of Brown and Company PLC under the LOLC Group, on Tuesday marked a defining moment in Sri Lanka’s electric mobility journey with a landmark event held at the Shangri-La Hotel, Colombo.

The occasion celebrated three significant milestones: the official unveiling of the BAW M8 flagship MPV, the completion of 1,500 customer EV deliveries nationwide, and the announcement of the exclusive strategic partnership with global EV charging leader Qingdao TELD New Energy Technology Co., Ltd., (TELD).

Senior leadership from the LOLC Group, Beijing Automobile Works Co. Ltd., (BAW) and TELD graced the event, including LOLC Holdings PLC and Brown and Company PLC Chairman Ishara Nanayakkara, LOLC Holdings Group Managing Director/CEO Kapila Jayawardena, Browns EV Executive Director Vijitha Bandara, CEO Pavithra Jayasekara, BAW Vice President Zhihong Gu, Weiqiao Smart Auto International Co., Ltd.,General Manager Fedya Jia, and Qingdao TELD New Energy Technology Co., Overseas Regional Director Li Zhengyi.

The event signified a clear shift in how mobility is being reimagined in Sri Lanka. In a market long constrained by affordability and access, Browns EV has emerged as a catalyst for change, translating global electric mobility advancements into practical, attainable solutions for Sri Lankan consumers through strong international partnerships and a rapidly expanding ecosystem.

The evening’s centerpiece was the unveiling of the BAW M8, a 7-seater flagship MPV manufactured by Beijing Automobile Works, one of China’s most respected automotive brands with a heritage dating back to 1951. Developed under the Shandong Weiqiao Pioneering Group, a Fortune Global 500 conglomerate, the M8 reflects BAW’s evolution into next-generation mobility.

Designed for families, executives and fleet operators, the BAW M8 combines generous proportions, flexible seating and a refined cabin experience. Built on a spacious 5.3-metre platform with a 3,200 mm wheelbase, it prioritises interior comfort, complemented by a modern exterior design. As an electric vehicle, the M8 delivers the smoothness of electric driving with long-distance confidence. With a range exceeding 1,050 km, the M8 is well suited to Sri Lankan driving conditions.

Inside, the M8 offers a premium, technology-led experience, featuring a fully digital instrument cluster, a large floating touchscreen, dual power sliding doors, electrically adjustable seats with leg rests, seat heating, massage function and ventilation, multi-zone climate control and external power discharge capability. Safety is reinforced with multiple airbags, electronic stability systems and advanced braking technologies. Introduced at a price of Rs. 21 million, the BAW M8 bridges the gap between ultra-luxury and affordability, delivering flagship level comfort and technology to Sri Lanka’s MPV market.

Equally significant was the ceremonial handover of the 1,500th electric vehicle by Browns EV, reflecting strong market confidence and the company’s consistent ability to deliver on its promises. This milestone builds on the strong performance of models such as the BAW E6 and BAW E7, underscoring a decisive shift towards electric mobility.

LOLC Holdings PLC Group Managing Director/CEO Kapila Jayawardena said: ‘Through Browns EV, we have redefined vehicle ownership in Sri Lanka. What was once out of reach, the aspiration to own a modern, technologically advanced vehicle, has now become a reality for over 1,500 customers. In early 2025, we committed to delivering vehicles priced below Rs. 5 million, and as a responsible, people-centric organisation, we delivered on that promise. Supported by a fully integrated ecosystem encompassing financing, insurance and after-sales care, and now strengthened by strategic EV charging partnerships ahead of a nationwide rollout, LOLC continues to create sustainable value for customers and drive meaningful progress for the nation.’ Further strengthening this ecosystem, the event also marked the announcement of an exclusive partnership with Qingdao TELD New Energy Technology Co., Ltd., (TELD), the world’s largest EV charging operator and manufacturer. For EV users, this collaboration directly addresses one of the most critical adoption barriers – access to reliable and convenient charging.

TELD, the global leader in EV charging solutions and one of China’s charging standard writers, is backed by over 1,300 technical patents, a 1,500-strong R and D team, and a dominant 40% share of China’s EV charging consumption market, operating more than 800,000 charging points worldwide. Its solutions are certified to international standards including IEC 61851, CE, CB and TÜV, ensuring high levels of safety, reliability and operational stability.

Under this collaboration, arrangements are in place to strategically deploy TELD chargers across key locations, ensuring greater convenience and confidence for EV owners.

The Health Ministry yesterday said that the risk of Nipah virus transmission to Sri Lanka remains minimal, following reports of cases in West Bengal, India.

In a media statement, the Ministry said the Nipah virus is a zoonotic infection that primarily affects animals, particularly fruit bats, and can be transmitted to humans through close contact with infected animals or contaminated materials. Limited human-to-human transmission may occur through prolonged close contact with respiratory secretions or bodily fluids of infected individuals.

The Ministry stressed that the virus is not airborne and does not spread easily through casual contact, unlike influenza.

A limited number of cases have been reported in India, and the World Health Organisation (WHO) has not recommended any travel restrictions in relation to the outbreak, the statement said.

‘At present, the risk of transmission to Sri Lanka is considered minimal,’ the Ministry said.

Health authorities said Sri Lanka maintains a national disease surveillance system capable of early detection and rapid response to emerging infectious diseases, including laboratory diagnostic facilities at the Medical Research Institute to identify Nipah virus infection in the event of an imported case.

The Ministry said it continues to monitor the regional situation in coordination with the WHO and other partners, and urged the public to rely on official communications for accurate information. Authorities said preparedness measures are in place to respond promptly should a suspected case be detected.

January 2026: AIA Insurance Lanka was honoured to host Lee Yuan Siong, Executive Director, Group Chief Executive and President of AIA Group, during his official visit to Sri Lanka. This significant visit reaffirms AIA’s continued commitment to the Sri Lankan market and its long-term vision to uplift the protection and well-being of Sri Lankans.

Mr. Lee was accompanied by Biswa Misra, Chairman of the Board of Directors of AIA Sri Lanka, and Group Chief Technology and Life Operations Officer of AIA Group. Upon arrival, he received a warm welcome from a vibrant group of AIA Sri Lanka’s Gen Z employees, reflecting the company’s culture of inclusivity and youth empowerment.

During his visit, he engaged in a productive meeting with the AIA Sri Lanka Board of Directors, focusing on the company’s strategic priorities, performance, and future opportunities in the local market. As part of his engagements, he also met with the leaders of AIA Sri Lanka’s exclusive bancassurance partners: Kelum Edirisinghe, Director/CEO, National Development Bank PLC, Thimal Perera, Director/CEO, DFCC Bank PLC and S. Prabagar, Chief Operating Officer and Executive Director, Commercial Bank of Ceylon PLC. These discussions reinforced AIA’s strong partnerships and explored new avenues to expand access to life insurance across Sri Lanka’s banking network. Mr. Lee also visited the Insurance Regulatory Commission of Sri Lanka (IRCSL) and met with Chairman IRCSL Dr. Ajith Ravindra De Mel and other IRCSL functional Directors, to share meaningful insights on global insurance landscape and how AIA can support in IRCSL’s growth ambitions of Sri Lanka’s insurance industry.

A highlight of the visit was when Mr. Lee together with Mr. Misra, AIA Sri Lanka CEO / Director Chathuri Munaweera and General Manager Mr. Sarath Chandrasiri met the honourable Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, to discuss AIA’s commitment to supporting Sri Lanka in terms of financial inclusion, and long-term security for Sri Lankan families. During the visit, AIA Sri Lanka made a commitment to donate LKR 50 million to the ‘Rebuilding Sri Lanka’ national initiative.

Mr Lee also participated in a dynamic townhall discussion for AIA Sri Lanka’s employees and top sales achievers, where he conveyed his appreciation for their contribution to the company’s strong performance while inspiring them to continue driving AIA’s purpose of helping people live Healthier, Longer, Better Lives.

Speaking on this special occasion, Chathuri Munaweera, Director/CEO of AIA Sri Lanka, stated: ‘We were deeply privileged and honoured to have Mr. Lee visit Sri Lanka and show his support to us. His visit signifies AIA’s confidence in the Sri Lankan market as we continue to protect more families across the country. His leadership and vision inspire us to keep raising the bar in delivering exceptional value to our customers and partners.’

‘Would you tell me, please, which way I ought to go from here?’ ‘That depends a good deal on where you want to get to,’ said the Cat. ‘I don’t much care where-‘ said Alice. ‘Then it doesn’t matter which way you go,’ said the Cat.

Although Lewis Carroll claimed that his Alice’s Adventures in Wonderland were for children it offers eminently logical commonsense for politicians and specifically for Executive Presidents brazenly brave in utopian pursuits of making lives beautiful for all in a land of plenty.

On its front page of Wednesday 26 January, the Daily FT had four news reports relating to Foreign Direct Investment (FDI). The captions and contents of the four new reports convinced me that on FDI, this Government is well and truly lost in a wonderland. At least, Alice had the smile of the Cheshire Cat.

In the first, BOI Chairman Arjuna Herath has emphatically pronounced ‘Without concessions, Sri Lanka needs hard reforms to attract FDI’

Speaking at a Nations Trust Bank forum the BOI Chairman has said ‘Sri Lanka does not have the fiscal space to match concession-heavy regimes deployed by larger and better-capitalised economies, and must instead build competitiveness through lower costs, policy certainty and institutional efficiency. Herath said attracting investment would depend on creating a predictable and credible framework rather than relying on incentives the country cannot afford.’

In the second News Report ‘Sri Lanka pitches tax holidays, ‘Next Dubai Vision’ to attract UAE Investors ‘the Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe is reported to have said that ‘ Sri Lanka is offering tax holidays of up to 15 years and positioning Colombo Port City as a new financial and trade hub as it seeks to attract United Arab Emirates (UAE) investors amid renewed political and economic stability.’

The third news report was captioned President’s Special Envoy Hanif Goes Live on Channel News Asia from Singapore.’

Responding to questions on the economic promise of Port City Colombo, the President’s special envoy has said that ‘the project is designed as an export-oriented, services-led economic platform, anchored in private capital and governed by a clear, rules-based regulatory framework.’ He has ‘highlighted that Port City is not merely a real estate development, but a catalyst for high-value sectors such as financial services, IT and digital exports, professional services, logistics, and regional headquarters operations.’

The fourth news report is ”UAE attracts $45 b FDI in 2025, up 50%’. A senior official has stated that ‘the UAE attracted over $ 45 billion in foreign direct investment last year, up nearly 50% year-on-year, even as global FDI declined by 11%.”

President Anura Kumara Dissanayake is a great communicato. But that alone is not adequate. He must embark on a hard-nosed entrepreneurial and organisational culture. Two years into the business of governance, that is most unlikely.

The BOI Chief demands structural reforms. The Deputy Minister elaborates on incentives on offer. The special envoy holds out the promise of a rules based regulatory framework. The Senior official of the UAE who announces a 50% increase in UAE’s FDI performance in 2025 says it all. Strategy is measured by outcome. Strategy without execution is hallucination.

Countries around the world and more specifically countries in our region are all in a hot hunt for FDI. What is available in the form of possible FDI to this part of South Asia is a finite or discernibly limited pool with a hawkeye focus on available talent in the age of AI and digitisation.

This calls for high caliber personnel and not starry-eyed do-gooders from the largely monolingual petit bourgeoisie intelligentsia who think reading Lenin is the entrée to belong to the cognoscenti.

Beating the FDI drum in Dubai, Singapore and elsewhere is not what is needed. People of proven calibre must identify targeted investors and convince them of what Sri Lanka or its port city offers as a competitive value proposition in South Asia.

To use a Trumpian metaphor, prospective FDI investors must be assured of the host country’s absolute resolve’ to provide end-to-end support for committed investments.

The value proposition must consist of credible infrastructure including uninterrupted electricity, access to ports and global connectivity. That we close shop and don’t sell fish, meat or liquor on full moon days is not a convincing value proposition.

Again, as Donald Trump would tell you, each FDI is a deal with a targeted investor with incentives tailored to the targeted investors specific requirements. Not the kind that an indulgent father would compose to describe the daughter in an advertisement for a groom in the marriage proposals page in the Sunday papers!

A World Bank study has found that 80% of successful FDI ventures are the result of targeted campaigns. It has also been found that less than 40% of all Investment Promotion Agencies rely on targeted campaigns aimed at identifying FDI sources.

We are a nation that cannot implement an educational reform program avoiding street protests and vile invective. What does it tell you?

We must build an ecosystem that doesn’t substitute pageantry, ritual and learned mumbo jumbo on our cosmic origins for knowledge based digital transformation in this age of AI.

Professor E F C Ludowyk in his 1967 masterly page turner ‘The Story of Ceylon’ identified our collective and yet unrelieved malaise which constrains us in this age of AI coupled with uncertainty in geopolitics. His words are worth recalling today when we await AKD’s chimera of a renaissance or ‘Punarudaya’.

‘.the legendary heroes once created to satisfy the old needs are still resorted to in the entirely different circumstances of the present. Cultures having their mythical heroes is not surprising, indeed it would be strange if they lack them. There is a slight distinction to be drawn, however, between this and the need for heroes. To have invented what was once required is surely the normal and economical satisfaction of desires, to be met within the history of individuals and communities. But to insist on satisfying the recurring need at all times in the same old ways is surely an indication of deep-seated malaise… When we continually call for a hero whom we could follow , when we need sustenance from legendary forefathers, we are most probably showing symptoms of retarded adolescence.’

We must identify specific sectors where we can offer a credible value proposition to the FDI investor. Digital transformation is the key differentiator in this game. Wishful thinking is not the path to FDI.

We live in times of geopolitical instability. As the Financial Times UK informs us ‘… global competition for investment is intensifying. Countries aiming to leverage FDI for economic growth must present a compelling, strategic value proposition – and back it with coordinated, data-driven execution’.

The Embassy of the People’s Republic of China on Wednesday welcomed the ‘Happy Chinese New Year’ 2026 ceremoniously at the Nelum Pokuna Theatre, Colombo.

Chief Guest was Speaker of Parliament Jagath Wickramaratne.

Chinese Ambassador Qi Zhenhong in his address said as the Chinese Lunar New Year of the Horse approaches on 16 February, the ceremony at the Nelum Pokuna Theatre was fitting as it is a symbol of China-Sri Lanka friendship.

In his speech, Chinese Ambassador also said the following.

The Chinese New Year, or the Spring Festival, is the most significant and cherished traditional festival for the Chinese nation. It embodies the cultural values of family reunion, harmony, renewal, and the ushering in of good fortune. No matter where they are, returning home for a family reunion during the New Year remains the deepest emotional bond for hundreds of millions of Chinese. It is heartening to see that the Spring Festival, with its unique charm, is increasingly embraced by the world. Since its inscription last year on UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity, this ancient tradition has gained wider global recognition. It serves not only as a window for the world to understand China but also as a bridge fostering global civilisation dialogue and mutual learning. The ‘Happy Chinese New Year’ cultural activities have taken root in over 100 countries and regions worldwide. The ethos of ‘Joy, Harmony, and Sharing’ it promotes transcends language and borders, allowing people everywhere to feel the joy and warmth of spring.

China and Sri Lanka are good neighbours and reliable partners who stand together through thick and thin. Our friendship, with a history spanning millennia, remains evergreen and strong. Our bilateral relations, built on a foundation of mutual respect, equality, and mutual benefit, have stood the test of time and the changing international landscape, maintaining steady and forward-looking development. The practical cooperation and close people-to-people exchanges between our two countries in various fields, like a pair of steeds galloping side by side, continue to deliver tangible benefits to our peoples and inject positive energy into regional peace and prosperity.

People-to-people and cultural exchanges are the bond that connects hearts and minds. Yunnan, whose name means ‘South of the Colourful Clouds’ is a land in China blessed with diverse ethnic cultures and stunning landscapes. Dali in Yunnan is particularly renowned for its poetic scenery captured in the phrase ‘Wind, Flower, Snow and Moon’ and its unique Bai ethnic culture. Tonight, outstanding artists from the Dali Bai Autonomous Prefecture will present a wonderful performance that blends the cultural flavours of the Bai people with classic Chinese arts. You will enjoy the beautiful melody of ‘By the Butterfly Spring,’ which originates from the region of the Cangshan Mountains and Erhai Lake; appreciate the subtle and profound Eastern aesthetics expressed in the dance ‘Flowing Stream’; and feel the vibrant rhythm of the ‘Octagonal Drum and the Rattle Stick’. I believe this performance will serve as another vivid snapshot of the cultural exchange and mutual learning between China and Sri Lanka.

Friends, we are about to welcome the Chinese Lunar Year of the Horse. In Chinese culture, the horse symbolises galloping momentum, endeavour, loyalty, and success. The term ‘the spirit of the dragon-horse’ is often used to praise a tenacious and indefatigable positive attitude. This resonates well with the diligent, courageous, optimistic, and upward spirit of the Sri Lankan people. I sincerely hope that in the galloping Year of the Horse 2026, both China and Sri Lanka will forge ahead and achieve new and greater accomplishments on their paths of national development and rejuvenation! May the friendship and cooperation between our two peoples surge forward like steeds, with a future as boundless as a thousand-mile journey.

Finally, I wish the 2026 ‘Happy Chinese New Year’ events in Sri Lanka a complete success. Wish you all good health, family happiness, and all the best in the New Year.

Ceylon Land and Equity PLC said its Board has approved an investment of Rs. 1.7 billion to take up its entitlement in the Rights Issue of Shaw Wallace and Hedges Ltd., an unlisted company.

Under the transaction, Ceylon Land and Equity will subscribe to 86.32 million voting shares at a price of Rs. 17 per share, amounting to a consideration of Rs. 1.47 billion. In addition, the company will invest Rs. 236.5 million to acquire 21.5 million non-voting shares at Rs. 11 per share.

The company currently holds 172.64 million voting shares and 43 million non-voting shares in Shaw Wallace and Hedges. Following the proposed investment, its shareholding will increase to 49.2% of the issued ordinary shares of the company.

This holding will comprise 43.6% of the voting shares and 100% of the non-voting shares of Shaw Wallace and Hedges.

Ceylon Land and Equity said the investment will be funded through a combination of its own funds, temporary bank financing, and group borrowings. Major shareholders of Ceylon Land and Equity are Galle Face Properties (34.63%), Almas Holdings (24.3%), and Renuka Enterprises (11.7%).

Ceylon Land’s share ended down Rs. 0.10 at Rs. 12 yesterday on 567,854 shares traded.

As of end-September 2025, the company reported net assets of Rs. 13.44 per share with public shareholding at 49.96%.

It did not report any borrowings, with group-level retained earnings at Rs. 2 billion on a Rs. 4.1 billion balance sheet.

The Colombo stock market yesterday for the fourth session crossed the milestone 24,000-mark in early trading but retreated further than the previous occasions.

The ASPI ended down 0.38% or 91.22 points to 23,900.89 and the active S and P SL20 was down 0.22% or 14.55 points to 6,655.66.

Market turnover was over Rs. 6.9 billion on over 277.3 million shares traded. Foreign investors were net sellers on a net outflow of Rs. 20.9 million.

First Capital Research said the market ended lower amid profit-taking, reflecting cautious to mildly bearish investor sentiment with limited buying interest.

Top negative contributors to the ASPI were SFCL, CTC, JKH, CARS and CTHR. HNW and retail investors’ participation remained at an average level. The capital goods sector led the daily turnover with a share of 22%, followed by the real estate management and development, and insurance sectors collectively contributing 31%.

NDB Securities said high net worth and institutional investor participation was noted in Prime Lands Residencies, Ceylon Tobacco Company and Sampath Bank. Mixed interest was observed in Panasian Power, Asia Siyaka Commodities and Cargills Bank, whilst retail interest was noted in Softlogic Capital, Hemas Holdings and Softlogic Life Insurance.

The capital goods sector was the top contributor to market turnover, driven by Hemas Holdings and Colombo Dockyard, while the sector index declined by 0.64%. The share price of Hemas Holdings moved down by 10 cents to close at Rs. 34.80. Colombo Dockyard recorded a loss of Rs. 2.75 to close at Rs. 146.25.

The real estate sector was the second-highest contributor to market turnover, driven by Prime Lands Residencies, while the sector index increased by 0.70%. The share price of Prime Lands Residencies gained Rs. 2.60 to close at Rs. 46.80.

Softlogic Capital and Ceylon Tobacco Company were also among the top turnover contributors. The share price of Softlogic Capital gained Rs. 1.40 to close at Rs. 7.10 and Ceylon Tobacco Company declined by Rs. 49.75 to close at Rs. 1,701.50.

Almas Equities Research said investor sentiment remained subdued, as the market continued to trade without a clear directional trend. Despite the weak performance, increased retail participation helped improve liquidity, reflected in higher trading volumes and an active number of trades. Meanwhile, value-focused investors remained cautious, selectively seeking opportunities amid the current consolidation phase.

Market turnover was led by the capital goods sector, which recorded Rs. 1.55 billion, supported by 57.52 million shares traded. HHL.N generated the highest turnover within the sector, posting Rs. 0.42 billion, with 12.07 million shares traded.

Crossings accounted for Rs. 1.76 billion, representing 25% of total turnover. The largest crossing was recorded in PLR.N, with a turnover of Rs. 0.71 billion involving 15.93 million shares traded. Market breadth weakened further, with 77 gainers and 140 decliners, indicating continued selling pressure across the broader market.

CT Land Development PLC has appointed Zakir Mohamedally as a Non-Independent Non-Executive Director to its Board.

Mohamedally possesses over two decades of experience spanning audit, assurance, and capital market sectors of Sri Lanka. He began his career in 2005 within the Audit and Assurance Division of PricewaterhouseCoopers Sri Lanka. In 2007, he joined the CT Smith Holdings Group, where he currently holds the position of Group Chief Operating Officer and Head of Investment Banking. He has led significant transactions across Equity Capital Markets, Debt Capital Markets, and Mergers and Acquisitions in Sri Lanka, including cross-border deals.

He also serves as Managing Director of Odeon Holdings (Ceylon) Ltd., the parent company of CT Holdings PLC since August 2025.

Mohamedally is a Fellow Member of the Association of Chartered Certified Accountants (ACCA) UK. He is also an Associate Member of the Chartered Institute of Management Accountants (CIMA) UK and the Institute of Certified Management Accountants of Sri Lanka. Additionally, he holds a Post Graduate Diploma in Marketing from the Chartered Institute of Marketing (CIM) UK.

The South Asian Travel Awards (SATA) has officially opened nominations for its highly anticipated 10th edition, a significant milestone that celebrates a decade of excellence in regional tourism.

This year’s event promises to be a grand celebration of the remarkable achievements and contributions made by various stakeholders in the tourism industry across South Asia.

SATA Chairman Ismail Hameed expressed his enthusiasm for the occasion, highlighting the importance of recognising the hard work and dedication of individuals and organisations that have significantly impacted the travel and hospitality sectors. «We are thrilled to announce that nominations for the 10th Edition of the South Asian Travel Awards are now officially open,» said Hameed. «This event not only honors the best in the industry but also encourages continuous improvement and innovation within our region,» he added.

As SATA gears up for this monumental celebration, it is extending an invitation to travel enthusiasts, businesses, and stakeholders from across South Asia to actively participate in the nomination process. Hameed specifically emphasised the importance of participation from Sri Lanka, urging local travel businesses to showcase their achievements and talents on this prestigious platform.

The gala event for the 10th edition of SATA will be held in the picturesque Maldives in September 2026, a fitting choice given the country›s reputation as a premier travel destination. «We are excited to host the event in such a beautiful locale, which represents the very essence of South Asian hospitality,» Hameed revealed.

The deadline for submitting nominations is set for 25 March 2026, allowing ample time for participants to prepare and present their best work. As the countdown begins to this remarkable celebration, anticipation builds among tourism professionals and enthusiasts alike, all eager to see who will be honored at the 10th edition of the South Asian Travel Awards.

Hameed extended his gratitude to the hospitality industry in Sri Lanka and beyond, stating, ‘Thank you for your continued support in celebrating the best of South Asian hospitality. This milestone year is an opportunity to recognise the exceptional talent and dedication within our industry, and we look forward to highlighting these achievements during the gala event,» he added.

National Development Bank PLC (NDB) yesterday said that it has strengthened its strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group, on three distinct fronts, to support its journey forward as an impactful contributor to Sri Lanka’s banking and financial services landscape.

The bank said relationship between NDB and IFC, which dates back to 1998 having collaborated on multiple fronts over the years, will now be extended to cover a Risk Sharing Facility (RSF) and a trade finance facility focusing on small and medium scale enterprises (SMEs), and an Advisory Engagement to help the bank in elevating transaction banking, supply chain finance business, and enhance climate risk management practices.

The RSF, which is soon to be operationalised, is a part of the IFC’s Small Loan Guarantee Program (SLGP), under which the IFC will equally share risks with the NDB for all eligible facilities. The program has been designed with a greater focus on supporting lending for agriculture value chains, SME exporters, and women empowerment, amongst other social betterment causes. The IFC will also provide embedded advisory support which will further strengthen the NDB’s capacity to effectively deploy the facility through targeted training initiatives, while also enhancing the capabilities of the bank’s SME clientele.

The second agreement comprises a trade finance facility under the IFC’s Global Trade Finance Program (GTFP). This unfunded facility will be utilised to guarantee the NDB’s trade-related payment obligations, thereby supporting the bank’s international trade activities. Through this engagement, the NDB will collaborate with the IFC’s trade finance experts and benefit from the IFC’s strong credit standing and deep technical expertise in the said subject matter.

The IFC’s AAA-rated guarantee provides high-quality risk mitigation to participating banks, significantly reducing counterparty risk on covered trade transactions, optimising capital consumption through improved risk weighting, and enhancing the confidence of global correspondent banks in transacting with the NDB, ultimately enabling increased trade flows for the bank’s customers. By supporting the NDB’s role in connecting Sri Lankan businesses to global supply chains, this facility will help expand market reach for SMEs and exporters.

In addition to financing, the NDB also enters into a series of advisory initiatives.

With support under the Global SME Finance Facility (GSMEF), the IFC will provide technical assistance to the NDB to modernise the bank’s Transaction Banking (TB) and Supply Chain Finance (SCF) business. This partnership will support the enhancement of SCF and TB business operations, helping to optimise working capital management within corporate value chains and close the financing gap for SMEs, with a particular emphasis on women-led businesses.

Further, with support from the Government of Japan, the IFC will assist the bank in conducting a climate risk diagnostic and physical risk materiality assessment, forming the foundation for establishing a comprehensive climate risk management framework. This engagement will enable the NDB to formally identify climate risk as a key risk category and integrate it into the bank’s overall risk management framework and strategy. The project comes at a particularly timely juncture and will help reinforce the bank’s commitment to transparency, resilience, and sustainability.

NDB Bank CEO/Director Kelum Edirisinghe said: ‘We are very pleased to further strengthen our existing partnership with the IFC. The NDB is currently on a strong growth momentum, having just embarked on its new strategic roadmap and charting its course towards an ambitious 2030. This further collaboration with the IFC comes at this crucial juncture where the bank’s efforts will be further augmented with the IFC’s vast technical expertise and funding strength.’

‘The bank will benefit from multiple fronts, including – amongst others – capacity building and knowledge enhancement for our staff on each of these distinct engagements, provide greater agility to support the needs of our SMEs more so in their now time of need and an enhanced ability to provide efficient and customised trade solutions for all our customers and, from a climate risk perspective, strengthen our related risk assessment capabilities. All in all, these tie-ups will collectively help the NDB in its efforts to play a greater role in supporting the country’s SMEs and its sustained economic growth agenda and better position the bank to deliver long-term sustainable value for the benefit of all its stakeholders including, amongst others, its customers and shareholders,’ Edirisinghe added.

IFC Regional Director – Financial Institutions Group (Asia and the Pacific) Allen Forlemu said: ‘When SMEs thrive, entire economies move forward. Access to capital remains a critical priority for Sri Lankan entrepreneurs, and our partnership with the NDB is designed to address this by helping SMEs access the financing and the know-how needed to scale and grow. This reflects the IFC’s long-term commitment to Sri Lanka’s economic revival and growth ambitions, underscoring the private sector’s role in driving inclusive progress.’

Aligned with the World Bank Group priorities for Sri Lanka, this partnership aims to deliver targeted solutions for SMEs, helping businesses overcome challenges and supporting the country’s long-term economic resilience, he noted.