US provides $40 m in financing to support SMEs, empower women

The United States on Thursday provided US$40 million in financing to SDB Bank in order to bolster Sri Lanka's Small and Medium sized Enterprise (SME) sector and assist women entrepreneurs.

The loan is part of $265 million in funding the U.S. International Development Finance Corporation (DFC) is providing to Sri Lankan banks, including SDB Bank, DFCC Bank, and NDB Bank, to promote international investment and inclusive economic growth, the US embassy said in a media release. 

SDB bank will use the money to provide over 1,400 loans, ranging from Rs.500,000 to Rs.1 million each, to SMEs throughout Sri Lanka. At least 40 percent of those loans will be granted to businesses that are owned by women, or provide a product or service that empowers women, as part of DFC’s 2X Women’s Initiative. Many of the loans will also support Sri Lankan businesses impacted by the global COVID-19 pandemic.

Symbolically delivering the funds at a ceremony in Colombo, U.S. Ambassador to Sri Lanka and Maldives, Alaina Teplitz said: "Not only will this funding help small and medium-sized businesses in Sri Lanka on their path toward post-pandemic economic recovery, but it will also assist Sri Lankan women access financing that will allow their businesses to grow.  Empowered women are a critical component of any thriving economy, and we look forward to continuing to work with our Sri Lankan partners to ensure local women have the tools and resources they need to succeed."

The US remains committed to a secure and prosperous Sri Lanka. In 2020, US foreign direct investment was $13 million, bringing cumulative US investment in the country to $274 million.