Colombo, Sri Lanka, June 23, 2020—IFC, a member of the World Bank Group, is making a $175 million investment in John Keells Holding (JKH) to expand its supermarket chain in Sri Lanka and help fund expansion or refurbishment of hotel properties in Sri Lanka and the Maldives.
The $175 million long term investment is IFC’s largest in Sri Lanka in 50 years of work in the country and will be the first supporting investments in the Maldives in a decade.
The move is intended to provide JKH the flexibility and agility to fund its investments in an optimal manner, while providing additional support to the Group’s liquidity position. Overall, JKH’s expansion plans for its supermarket and hotel operations will generate significant jobs over the next five years.
“I believe partnering with an internationally reputed financial institution such as IFC, particularly at this juncture of time, is a vote of confidence for JKH and the country, at large,” said Krishan Balendra, Chairman and CEO of JKH. “Sri Lanka’s growth prospects in the medium to long-term remain positive and we are confident that, as always, we have the strength and resolve to keep moving forward with our investment pipeline despite the current period of unprecedented challenges where the outlook is now more positive.”
With tourism being a vital area for both Sri Lanka and Maldives, the investment will help create much needed direct and indirect jobs as well as generate considerable foreign exchange. In addition, as a longstanding partner since 1999, this investment in JKH will be used to support the Group’s plans to open about 100 new supermarkets in Sri Lanka over the next three to five years, with a focus on less developed regions – a move that will benefit micro, small and medium sized enterprises as well as farmers who will become part of the supply chains to the new stores.
“IFC support will enable JKH, as one of the largest and most reputable businesses in Sri Lanka, to continue to invest, and ultimately create more jobs and work for small and medium sized businesses, despite the challenging economic headwinds and uncertainty over COVID-19,” said Amena Arif, IFC Country Manager for Sri Lanka and the Maldives. “It will also send a strong and positive message to the investor community that capital investments in Sri Lanka and Maldives are viable at this challenging time and are important to help the economies and the community to build resilience for the future.”
The investment, which is part of IFC’s broader efforts to create quality jobs in Sri Lanka and the Maldives, will also boost the supply of “green” hotels in the Maldives to meet growing demand. JKH will adopt IFC’s green building standards – EDGE Buildings – for its newly refurbished hotels in the Maldives, aimed at providing a demonstration effect to other hotel operators. In the Maldives, tourism has accounted for nearly three-quarters of the country’s total GDP, while in Sri Lanka, tourism was, prior to the pandemic, the third largest and fastest growing source of foreign currency in the country.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—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 2019, we invested more than $19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About JKH
John Keells Holdings PLC (JKH) is the largest listed conglomerate on the Colombo Stock Exchange, with business interests primarily in Transportation, Consumer Foods, Retail, Leisure, Property and Financial Services. Started in the early 1870s as a produce and exchange broking business, the Group is known to constantly re-align, re-position and re-invent itself in pursuing growth sectors of the time.
The Group’s investment philosophy is based on a positive outlook, bold approach, commitment to delivery and flexibility to change. JKH is also committed to maintaining integrity, ethical dealings, sustainable development and greater social responsibility in a multi-stakeholder context. JKH is a full member of the World Economic Forum and a Participant member of the UN Global Compact. For more information, visit www.keells.com.