ECONOMYNEXT — The International Finance Corporation (IFC) of the World Bank Group is committed to supporting Sri Lanka’s ongoing reforms and growth agenda, IFC Vice President for Asia Pacific Riccardo Puliti said during a recent visit that saw the World Bank Group entity enter agreements with two high profile corporate entities in the island nation.
Speaking at an event, Puliti also highlighted the importance of private sector-led development for inclusive economic growth.
A statement from the IFC said the senior IFC official had held meetings with President Ranil Wickremasinghe, Minister of Power and Energy Kanchana Wijesekera, Governor of the Central Bank of Sri Lanka (CBSL) Nandalal Weerasinghe, private sector representatives, and development partners.
“Sri Lanka has immense potential. As the country recovers from the unprecedented economic crisis, it is crucial to maintain the momentum and continue implementing key measures to support the transition from economic stabilisation to sustainable growth. By embracing necessary reforms, fostering a conducive business environment, and prioritising sustainable, inclusive growth, Sri Lanka can unlock its full economic potential and create a bright future for its people,” IFC quoted Puliti as saying.
During his visit, Puliti signed an agreement for a new equity investment in Sunshine Healthcare Lanka Limited to support the company in its growth plan to increase its pharmaceutical manufacturing capacity and expand the pharmaceutical retail footprint.
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“From providing banks with a much-needed cross-currency swap facility a year ago, to now investing in equity, IFC is committed to supporting Sri Lanka as it transitions from stabilization to sustainable growth. This is a vote of confidence in the country’s private sector and economic recovery,” said Puliti.
Puliti also signed an advisory engagement with Commercial Bank of Ceylon (CBC) to scale up green finance, aimed at “fostering a sustainable future for Sri Lanka’s financial sector”. Through this partnership, funded by the European Union, IFC aims to assist CBC in its transition towards net-zero and diversify its green finance portfolio, the IFC said in its statement.
“IFC will continue to assist Sri Lanka in developing and scaling up green finance to support the country in its path to a net-zero future,” said Puliti.
“We continue to work with the private sector to create a robust investment pipeline, along with supporting the government on the ongoing reform agendas. These moves are crucial in creating quality jobs, enhancing competitiveness, and bolstering growth,” he said.
“IFC intends to deepen our investments in the country, recognizing the potential and opportunities that lie ahead,” he added.
Since the onset of the pandemic, IFC has invested over 800 million US dollars in Sri Lanka providing essential long-term capital and trade financing to help sustain businesses and preserve jobs, the organisation said. (Colombo/May07/2024)