ComBank Enhances WSME and Agri SME Funding with IFC’s $60M Risk Facility
Commercial Bank of Ceylon, Sri Lanka’s largest lender to small and medium enterprises (SMEs), has partnered with the International Finance Corporation (IFC). This collaboration aims to enhance funding for women-led and agricultural SMEs with a risk-sharing facility worth $60 million.
ComBank’s $60 Million Risk Facility for SMEs
The newly established risk-sharing facility (RSF) will provide significant leverage to Commercial Bank. The IFC will assume 50% of the credit risk involved in a $60 million portfolio of new SME loans. This partnership aims to expand lending capabilities while focusing on financial inclusion and economic resilience.
Targeted Support for Women-Led and Agri-Businesses
Commercial Bank’s initiative specifically targets women-led businesses and agricultural enterprises. By prioritizing these sectors, the facility promotes financial inclusion and aims to strengthen important productive sectors within the Sri Lankan economy.
- Funding Amount: $60 million (over Rs. 18.5 billion)
- Risk Coverage: IFC will assume 50% of the credit risk.
- Target Sectors: Women-led enterprises and agri-businesses.
Expanding Lending Capacity and Economic Growth
The partnership will enable Commercial Bank to adopt a flexible approach to credit assessment. This allows the bank to support SMEs that may have faced financing barriers in the past. The initiative is expected to energize the broader market and inspire other financial institutions to grow their SME portfolios.
Sanath Manatunge, Managing Director/CEO of Commercial Bank, highlighted the importance of this facility. He stated that it reinforces the bank’s commitment to SMEs, which are crucial for post-crisis recovery and job creation in Sri Lanka.
Long-standing Partnership with IFC
The collaboration with the IFC builds on a more than two-decade partnership. This relationship has focused on SME development, women’s empowerment, and sustainable finance. The facility aligns with the World Bank Group’s mission to support national development priorities.
As the leading lender to SMEs, Commercial Bank accounts for over 30% of the total SME lending within Sri Lanka, according to 2024 data from the Ministry of Finance. The bank continues to strive for innovation and effectiveness in supporting local entrepreneurs.
Conclusion
Through this strategic partnership with the IFC, Commercial Bank of Ceylon is poised to enhance its lending capacity significantly. By focusing on key sectors, the bank continues to advocate for sustainable economic growth in Sri Lanka.
