NTB Secures $70 Million IFC Funding to Support Small Businesses

Nations Trust Bank PLC (NTB) has secured a debt financing package of up to $70 million from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, to support the recovery of small businesses affected by Sri Lanka’s recent economic crises.

The funding marks the IFC’s first debt transaction in Sri Lanka’s financial sector since the 2022 financial crisis and reinforces its longstanding partnership with NTB. The investment reflects IFC’s confidence in the bank’s strength and stability.

The financing package includes a $50 million senior unsecured loan and a $20 million Global Trade Finance Program facility. It is expected to enhance NTB’s capacity to expand credit support to key economic segments as the country’s recovery gathers pace.

The investment is aimed at strengthening Small and Medium Enterprises (SMEs), particularly women-owned businesses, which play a vital role in Sri Lanka’s economy. According to the MSME Financing Gap Database, Sri Lanka’s SME financing shortfall exceeds 20% of GDP, underscoring the need for sustained access to credit.

NTB Director and CEO Hemantha Gunetilleke said the investment comes at a critical time for the country’s economic recovery.

“This transaction enables NTB to extend essential financing that supports both immediate recovery and long-term growth. By expanding access to credit for underserved sectors, we remain committed to driving sustainable economic development,” he said.

IFC Regional Industry Director for Financial Institutions Group (Asia and Pacific) Allen Forlemu said the partnership signals IFC’s continued commitment to Sri Lanka’s private sector.

“This investment will expand affordable, long-term financing for SMEs, the engine of the economy. By empowering entrepreneurs, we are supporting growth, job creation, and a more inclusive and resilient future for Sri Lanka,” he said.

Aligned with World Bank Group priorities, the partnership aims to deliver targeted financial solutions that help businesses overcome challenges and strengthen Sri Lanka’s long-term economic resilience.