The International Finance Corporation (IFC), a member of the World Bank Group, has provided a cross-currency swap facility to Sampath Bank PLC, and two other private banks, to support Sri Lanka by stabilising the nation’s economy amid the ongoing economic crisis.
The IFC notes that USD 400 million will be a cross currency swap over a period of one year.
Sampath Bank is among the three of the country’s leading national banks which facilitates over 30 percent of Sri Lanka’s remittances and exports. The move is expected to enhance the dollar denominated import of essential goods, while also strengthening the two decade long relationship between Sampath Bank and IFC.
Sampath Bank will now be able to improve access to medium and long-term finance for its clients, helping local businesses sustain their operations.
Managing Director of Sampath Bank, Nanda Fernando said, “The facility provided by IFC comes at a juncture where the Sri Lankan economy is facing a challenging time. The transaction will enable Sampath Bank to better manage our foreign currency holding by borrowing at lower rates and manage our foreign currency exposure, while facilitating foreign currency lending to our customers across the whole economy.”
“The transaction will also renew the longstanding relationship with IFC, which was spread across many business areas such as trade, foreign exchange, and financial services,” he said.
Over the past five decades, IFC has been committed to supporting Sri Lanka’s economic growth, and this latest facility is yet another example of its continued partnership with the nation. This cross-currency swap facility is a testament to IFC’s commitment to promoting economic stability and resilience in Sri Lanka, and is therefore pleased to be able to work with Sampath Bank and two other private banks to provide essential support during these challenging times.