NTB secures up to US $ 70mn IFC debt financing package

From left: IFC Regional Industry Director Financial Institutions Group Asia Pacific Allen Forlemu and Nations Trust Bank Director and Chief Executive Officer Hemantha Gunetilleke 

• Becomes first bank in Sri Lanka to secure post-crisis multilateral debt funding through IFC 

Nations Trust Bank PLC (NTB) has secured up to US $ 70 million debt financing package from the International Finance Corporation (IFC), marking a significant milestone in supporting the recovery of small businesses, which were disproportionately affected by Sri Lanka’s multiple crises. 

This is the IFC’s first debt transaction in Sri Lanka’s financial sector since the 2022 financial crisis. The investment forms part of the IFC’s longstanding partnership with NTB, reinforcing the IFC’s confidence in NTB’s strength and reliability. 

The investment package comprising US $ 50 million senior unsecured loan and US $ 20 million Global Trade Finance Programme line is expected to enhance NTB’s capacity to expand support to key economic segments as Sri Lanka’s recovery gains momentum. 

The investment is projected to enhance small and medium enterprises (SMEs), especially women-owned businesses, which represent the backbone of the national economy. According to the MSME Financing Gap Database, the SME financing shortfall in Sri Lanka exceeds 20 percent of GDP, highlighting the critical need for sustained credit access. 

NTB Director and Chief Executive Officer Hemantha Gunetilleke said, “NTB’s longstanding strategic partnership with the IFC has enabled this investment at a pivotal time for Sri Lanka’s economy. This transaction allows NTB to extend essential financing that is vital to the country’s recovery and long-term growth. By expanding access to credit for underserved sectors, NTB remains committed to supporting sustainable economic development.” 

IFC Regional Industry Director Financial Institutions Group Asia Pacific Allen Forlemu said, “Our collaboration with NTB is a clear signal of the IFC’s commitment to supporting Sri Lanka’s private sector. Building on our longstanding partnership, this latest investment will expand affordable, long-term financing for SMEs – the engine of the country’s economy. By empowering these entrepreneurs, we are fuelling growth, creating jobs and securing a more inclusive, resilient future for all Sri Lankans.”

Aligned with the World Bank Group priorities for Sri Lanka, this partnership aims to deliver targeted solutions for SMEs, helping businesses overcome challenges and supporting the country’s long-term economic resilience.