IFC, Canada invest in Sri Lanka’s Richard Pieris to support ‘green retail growth, create jobs
View(s):IFC, a member of the World Bank Group, with the support of the Government of Canada, is investing US$15 million in Sri Lankan retail chain Richard Pieris Distributors Ltd. The investment will help the company expand its modern retail network, support job creation, and develop local supply chains. It will also be used to install solar panels on company store rooftops. The financing consists of a $7.5 million loan from IFC’s own account and a further $7.5 million from the IFC-Canada Climate Change Program. The Program promotes private sector financing for clean energy projects, an IFC media release said.
“IFC’s support comes at an important time as we step up our operations and widen our network of branches across the island,” said Dr. Sena Yaddehige, Group Chairman of Richard Pieris & Co. PLC. “Through this planned expansion, we will contribute towards improving food safety and consumer access to better quality food products at affordable prices.” The investment into Richard Pieris Distributors will help create over 800 jobs directly and an even larger number of jobs indirectly by 2020. It will also help the company adopt green building measures and promote climate-smart technologies.
The Government of Canada’s contribution to the IFC-Canada Climate Change Program has helped make this financing package viable.
To date, Canada has provided close to 271 million Canadian dollars to the program, to climate change investments that are generating significant environmental and economic benefits in developing countries. Sri Lanka’s modern trade sector currently constitutes less than 20 per cent of total trade in the country, which is significantly lower than other emerging markets. The country’s retail sector has significant potential to contribute towards economic growth in an environment of steady economic development. ”As the sector grows, companies like Richard Pieris Distributors are in a prime position to expand their networks, boost employment opportunities through small businesses in their supply chains, and create value for consumers,” said Amena Arif, IFC’s Country Manager for Sri Lanka and Maldives.