IFC Archives

April 8, 2024

Colombo, Sri Lanka, April 8, 2024—To bolster growth and combat climate change, the International Finance Corporation (IFC) and Citizens Development Business Finance PLC (CDB)—a leading non-banking financial institution in Sri Lanka—are partnering to enhance CDB’s green portfolio, fostering sustainable and inclusive growth.

IFC will support CDB to expand its climate finance product offerings and devise a carbon credit aggregation business model, aligning it with the country’s climate commitments. IFC will also help CDB review and strengthen its environmental and social management system in line with IFC’s Performance Standards.

“Our collaboration with IFC is aligned with CDB’s strategic aspirations to realizing unprecedented growth and our firm sustainability commitment. This partnership with IFC will strengthen our journey of moving towards becoming a net zero entity. CDB’s strategy considers embracing sustainability and tech disruption as the key enabling pillars,” said Mahesh Nanayakkara, Managing Director/Chief Executive Officer, CDB.

This collaboration coincides with the visit of IFC’s Regional Director for South Asia, Imad N. Fakhoury, who reiterated IFC’s dedication to support Sri Lanka’s development, climate readiness, and resilience efforts during his inaugural trip to the country.

“Sustainability is at the heart of IFC’s mission in Sri Lanka. Our latest partnership with CDB allows us to leverage our expertise, including a deep understanding of the nation’s financial markets and a strong local presence,” said Fakhoury. “In alignment with national priorities, IFC is committed to advancing Sri Lanka’s climate agenda, fostering economic stability, and creating jobs and opportunities. We focus on an inclusive transition that prioritizes people, jobs, and long-term development. Given the nascent market for green finance in Sri Lanka, IFC aims to support financial institutions by building their capacity and helping them align their lending portfolios with changing climate scenarios.”

Fakhoury’s agenda included meetings with several private sector clients as well as government dignitaries including the Minister of Power and Energy, State Minister of Finance, Advisor to the President of Sri Lanka, Governor of the Central Bank of Sri Lanka, and Secretary of Treasury, among others. His top priorities are to expand crucial private capital mobilization and greater investment in Sri Lanka, while underscoring IFC’s commitment to support the country’s economic rebound.

Since the onset of the pandemic, IFC has invested over $1 billion in Sri Lanka providing essential long-term capital and trade financing to help sustain businesses and preserve jobs. In response to Sri Lanka’s economic crisis, IFC provided Cross Currency Swap lines totaling $100 million to three private banks, providing a timely USD liquidity injection to help strengthen the viability of trade, bank liquidity, and access to critical goods and items during a pivotal period.

March 13, 2024

Colombo, Sri Lanka, March 13, 2024—For the ninth consecutive year, IFC partnered with the Colombo Stock Exchange (CSE) and global partners to ‘Ring the Bell for Gender Equality.’ Aligned with International Women’s Day, the annual global initiative promotes women’s participation in the economy for inclusive and sustainable growth.

Increasing women’s economic participation and achieving gender parity in leadership are two key levers to address broader gender gaps in households, societies and economies. In Sri Lanka, IFC’s research has highlighted that the top 30 CSE-listed companies with higher gender diversity perform better financially, including return on equity, return on total assets, and price to earnings ratio.

Despite the clear business case for more women in leadership, there has been a concerning decrease in the share of women board directors in CSE-listed boards, dropping from 10.1 percent in 2023 to 8.7 percent in 2024. While women have made notable strides in breaking through the glass ceiling in recent years, this setback raises questions about the commitment to diversity and inclusion in corporate leadership.

“Investing in women has evolved from being the right thing to do to being the smart thing to do. Studies show that an organization’s success increases by as much as 34 percent if you have a more diverse team. Corporates need to understand the value of diversity and the wealth of results that can be generated from it,” said Dilshan Wirasekara, Chairman of the CSE. “I am proud to say that the CSE has excellent gender representation in our workforce, with over 47 percent of women in our staff cadre. We see that representation translating into a strong presence of women on a leadership level, comprising 44 percent.”

In an encouraging move, 13 Sri Lankan companies pledged last year to boost female representation at the board level and in management to a minimum of 20 percent by 2025. These businesses are taking intentional measures to strengthen their female talent pipeline and embed gender-inclusive policies that withstand economic uncertainties and contribute to long-term sustainability.

IFC is committed to promoting gender equality and has a strong focus on expanding access to finance for female entrepreneurs and increasing the number of women in leadership roles.

“Addressing barriers to women’s advancement in boards and leadership positions require collective, coordinated, and bold action by both private and public sector to accelerate progress towards gender parity, ignite renewed growth and greater resilience,” said Alejandro Alvarez de la Campa, IFC Country Manager for Sri Lanka and Maldives. “We know that integrating women into business operations can increase companies’ profitability and contribute significantly to shared prosperity. So, let’s recommit to mobilize the economic power of women – as employees, as entrepreneurs, and as leaders – for a better future for all.”

IFC Women on Boards and Business Leadership program has been an active champion for corporate women leaders in Sri Lanka, creating market awareness on the business case for gender equality, capacitating partners to support professional women’s career development, and providing market level technical expertise, including facilitating the launch of the Sri Lanka chapter of the global group, Women Corporate Directors.

This year’s International Women’s Day theme of Investing in Women, Accelerating Progress is a clear call to action. Stock exchanges can help improve transparency and disclosure of gender-related data, promote access to finance, and encourage women to invest in public markets. Exchanges can also help develop new products, such as sustainability-linked bonds with gender criteria, and adopt gender equality listing criteria.

“Women’s contributions will be instrumental in reviving our economy. Women being the dominant earners of foreign exchange in our country, contributing significantly to sectors such as apparel, tea, and remittances, their equal representation in corporate leadership is long overdue,” said Ayodhya Iddawela Perera, Managing Director of Sampath Bank. “As we navigate the challenges and opportunities ahead, let us remember that when women succeed, we all succeed.”

Reiterating the urgent need to increase women’s corporate leadership, a panel discussion on the business case for gender diversity on boards was also organized as part of the event. Panelists include Chinthaka Mendis, Director General, Securities and Exchange Commission of Sri Lanka; Dilshan Wirasekara, Chairman of Colombo Stock Exchange; Aroshi Nanayakkara, Chairperson of Sri Lanka Institute of Directors; and Thamali Rodrigo, Co-Chairperson of Women’s Chapter of Directors, Sri Lankan Chapter, moderated by Aarthy Arunasalam, Country Lead Gender and Economic Inclusion Department at IFC.

The Ring the Bell for Gender Equality Initiative – a global partnership that includes IFC, United Nations Global Compact, UN SSE, UN Women, and The World Federation of Exchanges – advocates for the full and equal participation of all people to achieve the Sustainable Development Goals and create a world free of poverty on a livable planet.

January 22, 2024

Colombo, Sri Lanka, January 22, 2024—IFC, a member of the World Bank Group, has appointed Imad N. Fakhoury as Regional Director for South Asia. Based in New Delhi, Fakhoury will spearhead IFC’s strategy and operations, while reinforcing relationships with the private sector, governments, and regional partners to boost impactful development outcomes in the region.

“Fueling economic growth and job creation in South Asia is imperative to unlocking the region’s potential and paving the path towards prosperity. Fakhoury’s deep experience in enabling and scaling up private capital mobilization for sustainable infrastructure and climate transitions will be a huge asset for IFC,” said Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific. “I’m confident his leadership skills and expertise will help further amplify our work, spurring private sector development and contributing to resilient economic growth in the region.”

IFC’s focus in South Asia centers on providing strategic investments and advisory interventions across Bangladesh, Bhutan, India, the Maldives, Nepal, Sri Lanka to promote inclusive sustainable growth and encourage global and regional integration, among others. Strengthening capital markets, increasing competitiveness, and closing the gender gap are also among IFC’s priorities in the region.

“Private sector investment is key to achieving South Asia’s development goals amid persisting global crises. By offering innovative and scalable solutions, IFC will help accelerate the region’s transition to a greener, more inclusive and resilient development model,” said Fakhoury. “Our focus is on creating opportunities where they are needed most, sustaining jobs, supporting climate goals, improving inclusion for all by improving services for people, and strengthening digital and financial access across the region. IFC will also support the region to mainstream gender considerations and help remove obstacles to gender equity in South Asia.”

In FY23, IFC provided nearly $3.45 billion in long-term investments in South Asia, including $1.3 billion mobilized from other investors.

Fakhoury added, “With the recently concluded COP28, IFC is prioritizing both climate investments and delivering impactful outcomes to help countries achieve their climate targets. I look forward to engaging with all stakeholders to ramp up our support for sustainable infrastructure—encompassing mitigation and adaptation as well as digital connectivity—while empowering small businesses and facilitating public-private partnerships (PPPs) to increase the region’s resilience.”

Fakhoury joined the World Bank Group in 2019 as a Senior Adviser at IFC and moved into his previous role as Global Director for Infrastructure Finance, PPPs & Guarantees at the end of 2019. From 2010-2018, he held several ministerial positions in successive Jordanian governments as Minister of Planning and International Cooperation, Minister of Mega Projects, Minister of Public Sector Development, and Chief of Staff to the King of Jordan.

One of the key architects of flagship PPP transactions in Jordan, he also served as a co-founder and chair/board member in several national strategic infrastructure PPP companies, public organizations, and councils.

Fakhoury has a BSc in Biomedical Engineering and an MSc in Engineering Management from Case Western Reserve University. He also holds a Master’s in Public Policy from the Harvard Kennedy School of Government, and an MBA from the Kellogg Business School at Northwestern University.

January 17, 2024

IFC-Partnership-for-Ceylon-Cinnamon-GI-Certification-LBN.jpg

Colombo, Sri Lanka, January 17, 2023—In an effort to better position and promote high quality exports of Ceylon Cinnamon, the International Finance Corporation (IFC) together with the Ministry of Plantation Industries and Sri Lanka Export Development Board (EDB) recognized the first batch of Geographical Indication (GI) certified Ceylon Cinnamon growers in the country.

The initiative to enhance competitiveness of Ceylon Cinnamon – which is indigenous to Sri Lanka – was supported by the European Union (EU), alongside industry stakeholders including Sri Lanka Standards Institution, the Industrial Technology Institute and the Department of Cinnamon Development.

Ceylon Cinnamon is Sri Lanka’s second largest agricultural export crop – after tea – accounting for 90 percent of global market share. It supports the livelihood of over 70,000 smallholder growers and providing jobs to over 350,000 Sri Lankans, the majority of which are women.

In 2022, Ceylon Cinnamon was granted the GI status when Sri Lanka first received the GI certification from the EU, with support from United Nations Industrial Development Organization (UNIDO). The certification acts as a source of competitive advantage, helping increase market differentiation and product turnover for the spice, while allowing for a premium price from the consumer.

“An enhanced competitive position of Ceylon Cinnamon in the EU market will have a positive impact in terms of an increase in exports for Sri Lanka, higher income and employment generation across the cinnamon value chain,” said Dr. Kingsely Bernard, Chairman/CEO of Sri Lanka Export Development Board.

The project supported EDB, the Department of Export Agriculture and the Department of Cinnamon Development to implement the GI process, including training of farmers. Forty-five farmers/processors met the GI requirements and obtained their certification, making them Sri Lanka’s first-ever GI certified Ceylon Cinnamon growers.

“Sri Lanka has been historically renowned for its richness in spices, including of Ceylon Cinnamon. Now with a renewed focus, we want to better position this unique spice for the authentic, quality it brings by reaching across high-value global markets,” said Alejandro Alvarez de la Campa, Country Manager for IFC Sri Lanka and Maldives. “Repositioning exports to move away from traditional low value products to high-quality, value-added exports is of strategic importance to the country in achieving a resilient, inclusive recovery of the economy.”

Lack of knowledge on quality requirements in high value markets, specifically among smallholders, presents a challenge in Sri Lanka. This certification will help build confidence among higher value markets, bringing in new opportunities for the agriculture sector.

“Agriculture is important for Sri Lanka’s economy. EU’s support for this initiative is built on our overarching efforts in boosting export potential of agricultural products – such as Ceylon Cinnamon – to the EU. Strengthening agricultural value chains can improve productivity, create more jobs and help Sri Lanka steer towards a more sustainable, resilient and productive agriculture sector,” said Dr. Johann Hesse, Head of Cooperation for the European Union Delegation to Sri Lanka and Maldives.

As part of the project, Euromonitor International, the world’s leading independent provider of strategic market research, carried out an assessment to identify high-value markets and product applications that present the greatest opportunity for Ceylon Cinnamon exports. Australia, Brazil, Germany, United Kingdom and United States of America and were identified as potential export markets under this.

October 4, 2023

October 04, 2023: Fortude, a global digital technology solutions company, recently completed a successful partnership with the International Finance Corporation (IFC). The company participated in the ‘Together We Can (TWC)’ and ‘Together We Can Plus (TWC+)’ initiatives, to drive workplace gender equality and foster an inclusive corporate culture Out of more than 50 entities that took part, Fortude was one of just five companies that participated in both the TWC and TWC+ initiatives.

The Together We Can (TWC) Peer Learning Partnership was a two-year initiative to improve business outcomes by advancing workplace gender equality. TWC took place in the midst of COVID-19 and during Sri Lanka’s worst-ever economic crisis, where the partnership focused on supporting companies to maintain business continuity during times of adversity. Along with other companies representing multiple sectors, Fortude participated in online training sessions led by IFC and coordinated by the Federation Chamber of Commerce Sri Lanka (FCCISL) under the Women in Work partnership between IFC and the Government of Australia.

As part of this initiative, Fortude was featured as an organisation at the forefront of gender inclusivity in the workplace, actively supporting working parents to stay employed and achieve better work-life integration. Some of the critical actions implemented include introducing flexible working hours and locations, and versatile work arrangements for pregnant or nursing mothers and parents to meet childcare needs. Fortude has also introduced enhanced paternity leave support for new fathers, making significant progress in a country where paternity leave is not government-mandated.

Commenting on the partnership, Arjuna Sirinanda, Managing Director at Fortude, stated, “Organisations have the fundamental responsibility of ensuring that a climate of respect and inclusion is built and maintained. Here at Fortude, when we speak of growth, it is in the context of growth for all our colleagues. Our commitment to Diversity, Equity, and Inclusion is not just an initiative, but a priority strategy, with the tone set by our leadership. Our partnership with the International Finance Corporation on the Together We Can and Together We Can+ journeys has provided us with invaluable data-driven insights, helping us to uphold our promise of building diversity and inclusion in the workplace. While the future might bring uncertainty, we feel that fostering an inclusive workplace will help us weather the effects on our most valuable resource – our people.”

Going above and beyond, Fortude participated in the ‘Together We Can Plus (TWC+)’ partnership to advance opportunities for Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) persons. The partnership provided a platform for companies to learn, share knowledge, and pledge to further enhance inclusivity for persons with disabilities and LGBTI persons.

“IFC believes in workplaces where everyone is valued and where differences are respected. Integrating diversity into our daily work means creating a culture that recognizes and affords opportunities to all. As one of the 50 Sri Lankan companies who were part of IFC’s Together We Can and Together We Can+ initiatives, Fortude shares our mission in advancing workplace gender equality, and diversity and inclusion. Fortude’s commitment and achievements in the ‘Together We Can’ initiatives are a testament to their leadership and dedication to creating an inclusive corporate culture. We believe that diversity drives innovation and business success, and we are excited to see how this partnership will create a future that is both inclusive and sustainable, making lasting impacts,” said Alejandro Alvarez de la Campa, IFC Country Manager for Sri Lanka and Maldives.

Aligning with the TWC+ commitments, the company established the ‘Senior Leadership Commitment’, demonstrating its dedication to fostering a culture where all employees, regardless of identity, feel a sense of belonging. This saw the introduction of an Equal Employment Opportunity (EEO) statement, which is now prominently displayed on all job advertisements, reiterating its commitment to providing an inclusive workplace for all.

Fortude conducted a gap analysis, to understand the needs and perceptions relating to LGBTI employees and to map out the steps required to enhance inclusivity for the LGBTI community. They also conducted in-person sensitization programs in collaboration with The Grassrooted Trust, ensuring that all employees have access to valuable diversity and inclusion training which has now also been included as part of their induction programme on their learning management system.

The results of TWC-driven initiatives have been reflected in Fortude’s recruitment pipeline. The company saw an increase in the number of applicants in its 2023 Graduate Trainee batches, with an increase in female applicants, showing the impact in relation to gender.

Fortude’s Diversity, Equity and Inclusion (DEI) strategy encompasses various initiatives and plans, including gender-neutral language, family-friendly policies, leadership commitment, and a strong focus on awareness-building and sensitization. The company has also expanded its efforts into the LGBTIQ+ space and is actively looking to further its commitment to persons with disabilities (PWD) and cultural diversity.

August 31, 2023

Singapore, August 30, 2023—Climate projects, micro, small, and medium-sized enterprises (MSMEs), women and farmers in Asia and the Pacific have benefited from record amounts of funding from IFC. The funds will alleviate poverty and increase prosperity in the face of overlapping crises and challenges, including climate change, gender inequality, food and energy insecurity, and higher inflation.

IFC, the largest global development institution focused on the private sector in emerging markets, committed a record $11 billion to 108 projects in Asia and the Pacific in the fiscal year ended June 30, a 10 percent year-on-year increase. This comprised $4.7 billion in long-term financing from its own account, $3.4 billion in mobilization, and $2.9 billion in short-term trade and supply-chain finance to facilitate trade flows.

Thirty-nine percent of long-term financing from IFC’s own account was invested in projects that will help tackle climate change and marine-plastic waste, critical issues in a region home to many countries that are most vulnerable to climate change and key contributors of plastic waste. Projects ranged from investments in Mongolia’s first green bond and blue finance in Thailand, to electric vehicles in India and sustainability-linked finance with pricing incentives tied to supporting the energy transition in South and Southeast Asia.

A record $4.7 billion was committed to financial institutions in the region, which are expected to improve access to finance for MSMEs through the provision of more than 1.6 million loans, with specific targets for women-owned businesses. MSMEs are the backbone of the region’s economy, accounting for more than 97 percent of its businesses and employing over half its workforce. Improving their access to finance, particularly in a high interest-rate environment and as banks retreat from riskier lending, is critical to creating jobs, spurring economic growth, and fostering more inclusive societies.

IFC’s investments in financial institutions also helped increase access to insurance for underserved people. Other projects are expected to provide more than 500,000 loans for affordable homes, many of which are for green housing, improving financial inclusion across the region.

A record $2.4 billion of investments and 69 percent of advisory projects included a focus on improving gender equality, against a target of 45 percent. Women represent 69 percent of IFC nominee directors on client company boards in the region, well ahead of the global corporate target of 50 percent by 2030. At the current rate of progress, it will take another 189 years to close the gender gap in East Asia and the Pacific and 149 years in South Asia, against a global estimate of 131 years[1]. With a diversity of challenges and pressures compounding, and women’s workforce outcomes suffering, investments aimed at improving gender parity are critical.

Converging crises put the region’s already stretched food systems under significant strain, pushing millions of people into poverty and erasing years of development gains. IFC invested in projects to improve food security in the region, including an investment to promote a resilient rice market in Bangladesh. This is IFC’s first investment from its new Global Food Security Platform, a $6 billion global facility set up to counter the food crisis. IFC projects in the last fiscal year are expected to improve the livelihoods of over 130,000 farmers in the region, with specific targets for women farmers.

“In the face of a multitude of challenges, the vibrant private sector in Asia and the Pacific is playing an increasingly critical role in helping the region to overcome its biggest development issues,” said Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific. “This record year cements our regional leadership in supporting the private sector and positions us to deliver on the aspirations of the World Bank Group’s Evolution Roadmap.”

Digitalization as a driver of connectivity and inclusion in Asia and the Pacific was also a focus of investment this past fiscal year. Projects ranged from investments in the Maldives to help connect it to the internet global superhighway via a state-of-the-art submarine cable system and a social commerce startup dedicated to solving challenges facing MSMEs in Indonesia, to advising the governments of Fiji, Samoa, and Solomon Islands on building digital national payment systems.

Other projects will increase access to healthcare in Indonesia, childcare in Fiji, improve logistics infrastructure in Cambodia, and support Sri Lanka amid an ongoing economic crisis, with a cross-currency swap facility to three of the country’s national banks.

[1] https://www3.weforum.org/docs/WEF_GGGR_2023.pdf

March 27, 2023

Colombo, Sri Lanka, March 27, 2023—To expand the reach of small and medium enterprises (SMEs), including women-owned small businesses, the International Finance Corporation (IFC) is supporting the Commercial Bank of Ceylon (CBC) launch a digital marketplace in Sri Lanka, helping business owners connect with more customers locally and abroad.

Named Commercial Bank LEAP, this one-of-its-kind initiative, which is supported under the Women in Work partnership between IFC and the government of Australia, will open new market opportunities and build business connections all SMEs including women-owned SMEs, corporate and businesses creating an international marketplace to buy and sell products and raw materials. The platform will also assist businesses to digitize their core banking activities, provide business intelligence and will feature multiple sales channels. It will also provide access to CBC’s banking services including loan products, non-financial services and insurance.

“Commercial Bank is extremely pleased to join hands with IFC to launch this pioneering digital marketplace ‘Commercial Bank Leap’. Building digital experiences around customers’ journeys is an ideal fit for the Bank, considering our committed focus on digitizing the banking landscape in Sri Lanka. We believe this will address the need gaps of enterprises including women led businesses and allow them to reach cross boarder levels in the global marketplace,” said Sanath Manatunge, Managing Director/Chief Executive Officer of CBC.

Of all SMEs in Sri Lanka, a quarter of which are owned or managed by women. Overall, SMEs account for around 45 percent of Sri Lanka’s formal employment. But the research shows lack of access to finance and business know-how holds many businesses in Sri Lanka, specifically women-owned, back from expending their businesses beyond their informal micro-scale enterprises.

“Sri Lanka’s macroeconomic crisis has had a negative and disproportionate impact on small businesses, particularly those owned by women, in their access to a wide range of customers and export revenue,” said Joon Young Park, IFC’s Regional Portfolio Manager, Financial Institutions Group for South Asia. “This is a timely and innovative initiative, offering a real avenue for small business owners to connect on a digital platform, access new financial products and grow their businesses, to help them not only survive but thrive, which will also positively impact the growth of Sri Lanka.”

Widespread differences between men and women in digital and financial inclusion continue to hold back women entrepreneurs. In 2020, an IFC study assessing over 400 SMEs highlighted the significant gaps in Sri Lanka in terms of the uptake of digital business channels, with only a quarter of women-owned businesses trying a new digital channel, compared to one-third of male-owned.

“Even though there are many women-owned SMEs in Sri Lanka, a lot of them have limited access to markets, finances and business processes. This makes doing business a challenge”, said Sophie Gordon, Second Secretary, Australian Department of Foreign Affairs and Trade. “It is wonderful that Australia has been able to support CBC develop a platform where women-owned SMEs can access digital banking products such as loans, non-financial services and insurance in one place. We hope this will allow facilitate access to new markets for more small businesses owned by women.”

Under this initiative, Globalinker has been selected as the platform provider for the newly built digital marketplace, with the platform allowing SMEs to not only connect with others in the country but also abroad.

In IFC’s over 50 years of operations in 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 7 percent equity stake. CBC is also one of the three banks that received support from IFC through a $400 million cross-currency swap facility to help facilitate the imports of essential goods such as food, medicines and fertilizers. Further, IFC and CBC recently joined forces to establish early childhood development centers to help meet demand for quality childcare services among employed parents in the Eastern Province of Sri Lanka as well.

About IFC

IFC—a 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 2022, IFC committed a record $32.8 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.

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March 14, 2023

Colombo, Sri Lanka, March 14, 2023—To help meet demand for quality childcare services among employed parents in the Eastern Province of Sri Lanka, the International Finance Corporation (IFC), Commercial Bank of Ceylon (CBC) and Sarvodaya have joined forces to establish early childhood development centers in the area.

It’s an innovative move with the project developed under the Women in Work partnership between IFC and the government of Australia, after an IFC study last year showed strong demand by parents for childcare services and local business owners also had strong interest in subsidizing the childcare services for their workforce.

The first of the centers will be established in Batticaloa, with CBC providing the support on infrastructure development. The facility, which will provide day-care and pre-school services, will be extended to all parents in the locality who will be in need of such facilities and specially to all employees of companies/institutions in the area who will pledge to partner with this initiative.

“Childcare is one key challenge faced by working women, hindering and most of the time entirely stopping their positive contribution for the economy. As an organization that focuses on sustainability and inclusivity, Commercial Bank is glad to join hands with IFC and Sarvodaya to facilitate the inaugural early childhood center under this project. We are confident that in the current socio-economic environment, this will be an invaluable opportunity for families, specifically the working women to continue their economic activities with confidence,” said Sanath Manatunge, Managing Director/Chief Executive Officer of CBC.

The 2022 IFC study surveyed almost 1,000 employees from 37 companies across Ampara, Batticaloa and Trincomalee districts. It found companies lost Rs. 99 million annually in productivity, due to employee absenteeism, distractions, and delays. Almost two-thirds of parents surveyed reported dissatisfaction, including safety concerns, with their existing childcare arrangements. Over half of parents said they would make use of a childcare service if one were available

“Access to quality, affordable childcare is a win-win situation for all, especially in making progress on advancing women’s participation in the workforce. This initiative is so welcome as we know when companies support their employees in meeting their childcare needs, it not only helps retain talent, but has significant business gains and productivity,” said Alejandro Alvarez de la Campa, Country Manager for IFC Sri Lanka and Maldives. “We also know that economic growth is more robust and sustainable when women and men alike participate fully in the workforce. For Sri Lanka, this is particularly crucial to achieve an inclusive, resilient recovery of the economy.”

As the local implementing partner, Sarvodaya, will help upgrade and fully equip the centers to provide children with the suitable setting to foster development. Each center aims to support 50 children, demonstrating a sustainable model for employer-supported childcare.

“Sarvodaya Movement which has played a pioneering role in early childhood development in Sri Lanka is extremely pleased to partner with IFC and Commercial Bank of Ceylon to take the childcare services in rural Sri Lanka to another level, particularly targeting working women,” said Dr. Vinya Ariyaratne, President of Sarvodaya. “By adopting an entrepreneurial model with the active involvement of employers – the business community – this project demonstrates a novel approach towards provision of sustainable and quality childcare.”

Poor access to quality childcare poses a key constraint on labour force participation among Sri Lankan women. Many employable women either fail to enter the workforce or exit prematurely and fail to return. Through the newly established early childhood development centers, the participating companies can expect more women to return to work after having a child. It also aims to reduce turnover and absenteeism associated with childcare responsibilities among employees.

“High-quality childcare in the early years provides the building blocks for educational achievement, women’s continued participation in the labour force, economic productivity and strong communities globally. Availability of affordable and regulated childcare would encourage more families in the Eastern Province to continue working especially women,” said Lalita Kapur, Acting Australian High Commissioner for Sri Lanka and Maldives.

IFC also plans to develop and roll out an awareness campaign with the local communities to promote the uptake of the service, especially on the business opportunities it provides for women entrepreneurs.

March 9, 2023

09^th March 2023, Colombo: In an effort to support Sri Lanka by stabilising the nation’s economy amid an ongoing economic crisis, the International Finance Corporation (IFC), a member of the World Bank Group, has stepped forward to provide a cross-currency swap facility to Sampath Bank PLC, along with two other private banks.

Accordingly, the IFC notes that USD 400 million will be a cross currency swap over a period of one year to Sampath Bank and two other private banks. After recognising that Sampath Bank is among the three of the country’s leading national banks which facilitates over 30 percent of Sri Lanka’s remittances and exports. The move is expected to enhance the dollar denominated import of essential goods, while also strengthening the two decade long relationship between Sampath Bank and IFC.

In addition to supporting Sampath Bank’s financing of exports of goods and services for their clients while also allowing the country to make USD-denominated debt repayments. Sampath Bank notes that through this facility, it will now be able to improve access to medium and long-term finance for its clients, helping local businesses sustain their valued operations.

Speaking on this development, Nanda Fernando, Managing Director of Sampath Bank PLC said, “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 manage 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.”

Over the past five decades, IFC has been committed to supporting Sri Lanka’s economic growth, and this latest facility is yet another example of its continued partnership with the nation. Throughout the COVID-19 pandemic, IFC has played a crucial role in supporting the Sri Lankan economy, investing over $830 million to provide long-term capital and trade financing to businesses in need, thereby preserving jobs and sustaining operations.

This cross-currency swap facility is a testament to IFC’s commitment to promoting economic stability and resilience in Sri Lanka, and is therefore pleased to be able to work with Sampath Bank and two other private banks to provide essential support during these challenging times.

Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.

March 8, 2023

Colombo, Sri Lanka, March 8, 2023—Thirteen of the leading companies listed on the Colombo Stock Exchange (CSE) have pledged their support to increase women’s representation at both their management and board levels.

The move comes as IFC partnered with the CSE for the eighth consecutive year for the ‘Ring the Bell for Gender Equality,’ celebrated in line with International Women’s Day. As part of IFC’s moves to promote gender equality, the 13 companies have signed onto a commitment to boost female representation at the board level and in management to a minimum of 20 percent by 2025.

“If we look at the progress that the exchanges have made, specifically with regard to listed companies, we relatively had a success; if we look at the numbers way back in 2018, we had 8 percent of women representation in our boards and that has increased to 10 percent today. We have global statistics that show women representing management in organizations even at board level have contributed to every aspect of better results, even in terms of financial results,” said Dilshan Wirasekera, Chairman of the Colombo Stock Exchange. “The event is used as a ‘call to action’ for businesses to advance women’s empowerment and gender equality. We wanted to invite initially the 20 S&P companies to pledge their commitment towards increasing female representation at the board level and in management to a minimum of 20 percent by 2025.”

The Global Gender Gap Report of 2022 indicates the share of women hired into leadership roles has seen a steady increase, from over 33 percent in 2016 to nearly 37 percent in 2022. However, amid multiple global crises, sparked initially by the COVID-19 pandemic, there are concerns that women’s workforce participation has dropped, risking further backsliding on gender parity.

IFC’s commitment to the initiative is part of its strong focus on gender equality, which includes leveraging relationships with financial institutions to expand access to finance for female entrepreneurs and increase the number of women in leadership roles.

“Better gender balance in business leadership is inextricably linked with achieving sustainable, inclusive growth. We know that making even small inroads in closing the gender gap can yield clear and positive results for businesses especially in financial performance and better decision-making processes,” said Sarah Twigg, Manager, Women in Work Program, IFC. “The commitment of the top 13 Sri Lankan companies is a significant step towards accelerating the progress we have made so far. This is also the time that Sri Lanka needs more women corporate and business leaders to help ensure an inclusive and resilient recovery in the country.”

The companies that signed up for the pledge are CIC Holdings PLC, Commercial Bank of Ceylon (CBC), Expolanka Holdings PLC, Hayleys PLC, John Keells Holdings PLC, Lanka IOC PLC, LOLC Holdings PLC, Royal Ceramics Lanka PLC, Sampath Bank PLC, Softlogic Life, Teejay Lanka PLC, Valibel Finance PLC, Watawala Plantations PLC.

The research shows accelerating the pace of gender parity could generate financial returns in the private sector, leading to significant economic, environmental, social, and governance gains in emerging markets. In Sri Lanka, research by IFC’s Women on Boards program has also highlighted the clear correlation between increased board diversity and financial performance, with positive trends being reported in line with indicators such as return on total assets and price-to-earnings ratio. IFC’s work on the ‘Women on Boards’ program in Sri Lanka is supported by the government of Australia under the IFC-DFAT Women in Work program.

“The global ‘Ring the Bell’ event helps raise awareness of the essential contribution women make to our economies – and reinforces the undeniable business case for women’s labour force participation. As Sri Lanka navigates significant economic challenges, it is critical now more than ever, that we find new ways to advance gender equality,” said Lalita Kapur, Australian Deputy High Commissioner to Sri Lanka and Maldives.

This year, nearly 120 exchanges around the globe took part in events worldwide. The 2023 ‘Ring the Bell for Gender Equality’ event in Sri Lanka marks a partnership between CSE, IFC, Government of Australia, Sri Lanka Institute of Directors, The World Federation of Exchanges, Sustainable Stock Exchanges (SSE) Initiative, UN Global Compact, UN Women, and Women in ETFs.

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