Press release —
Swedfund invests USD 15 million to support local job creation through MSMEs in Sri Lanka
Swedfund invests USD 15 million in Citizens Development Business Finance (CDB) to expand access to financing for micro, small and medium-sized enterprises (MSMEs) in Sri Lanka. The investment is expected to contribute to job creation and women’s economic empowerment.
Sri Lanka has faced several years of economic challenges that have constrained access to long-term financing for businesses. MSMEs account for a significant share of employment and economic activity, yet many businesses, particularly those operating in rural areas, continue to face difficulties accessing formal financing.
“We invest to increase access to capital to support MSME’s ability to grow, create more local jobs, add tax revenues and increase affordable access to products and services,” says Björn Areskog, Investment Director at Swedfund.
Through the investment in CDB, Swedfund will help increase the availability of capital for MSMEs across the country. CDB has a strong nationwide presence and reaches businesses that are often underserved by traditional lenders. A particular focus is placed on women’s economic empowerment, where 30 percent of the financing will support women-owned or women-led businesses.
Swedfund will also support CDB in strengthening its environmental and social risk management systems and climate related lending practices.
CDB is aligned with the 2X Challenge, meaning that the investment supports women’s economic empowerment by expanding access to finance and economic opportunities for women, in line with the 2X criteria.
About Citizens Development Business Finance (CDB)
CDB is one of Sri Lanka’s non-banking financial institutions and was founded in 1995. The company operates nationwide through more than 70 branches and provides leasing, lending and deposit products to MSMEs and retail clients in both rural and urban areas.
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About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund plays an important role in the implementation of the 2030 Agenda and the Paris Agreement on climate. Swedfund shares the same goal as development cooperation in general, but the tools Swedfund uses are different. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting the public sector.
Swedfund's investments contribute to the creation of decent jobs and increased access to essential products and services such as electricity and food. Swedfund is a long-term investor and is additional and catalytic through its investments and by mobilising private capital. Swedfund's feasibility studies support sustainable public infrastructure development, trade, and export opportunities for Swedish solutions.
We are part of Swedish development cooperation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance and financed through portfolio reflows and annual capital injections for which the Swedish Ministry for Foreign Affairs is responsible.
For more information: please visit www.swedfund.se/en
