High-level Cross-Cutting Insights for Sri Lanka
High-level, cross-cutting insights from Sri Lanka
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Traditional funding in Sri Lanka
Banks face the following challenges in issuing working capital loans for funding local companies:
⚫ incapability of locking-in equity after the initial working capital was fully utilized.
⚫ for investment opportunities such as biofuels, significant demand arising from the electricity crisis caused farmers to raise prices
for biomass raw materials, which adversely impacted the powerplants.
⚫ costs associated with transport of raw materials from other provinces to manufacturing units, drive up the costs.
Green financing opportunities
• The country rating will invariably be a restriction for green bonds. However, development organizations like DFCs can support by
offering credit guarantees.
UN
DP
Role of philanthropic capital
It is important to utilize the incoming aid and commitments of philanthropic capital to create a segue for private sector investments
in the medium to long term.
⚫ Philanthropic capital maybe required for supporting SMEs' survival in the short term.
• Such capital should be structured to make such businesses competitive in the medium to long term at which point more commercial
deployments can take over.View entire presentation