International Finance Corporation (IFC), a member of the World Bank Group, and Sri Lanka’s Commercial Bank of Ceylon PLC has entered into an interest rate swap arrangement for a notional amount of $15 million, IFC communiqué said.
The swap facility allows Commercial Bank to actively manage interest-rate risk related to its assets and liabilities. It also enables the bank to better serve customers seeking stable interest rates on their loans. This is the first time that IFC is offering interest rate swaps in Sri Lanka.
“We have worked closely with IFC on several initiatives to promote economic inclusion in Sri Lanka by facilitating economic and financial integration across the country,” Commercial Bank MD/CEO Jegan Durairatnam said. “We are pleased that IFC is associating with us further by becoming the counterparty to this interesting derivative instrument that will help us manage our interest-rate risk more actively.”
“IFC has a long-standing partnership with Commercial Bank. It has partnered with us on a number of innovative financings,” said Amena Arif, IFC’s Country Manager for Sri Lanka and Maldives.
“This swap facility is no exception and will provide the bank with an important risk-management tool.”
Sri Lanka is a priority country for IFC. IFC’s committed portfolio in Sri Lanka is now US $230 million and covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and healthcare.
IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance and by offering capacity-building and training opportunities