This will help the bank to invest more in local companies focussed on renewable energy, IFC said in a statement.
“There is substantial untapped potential in Sri Lanka for investments in green-energy projects. This work is part of our broader strategy to help clients mitigate climate-change risks and contribute to a cleaner, more sustainable environment,” said Jegan Durairatnam, MD of Commercial Bank.
IFC’s Green-Finance Program aims to increase private sector investments in green projects. Sri Lanka is a priority country for IFC and it’s committed portfolio in Sri Lanka covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and healthcare.
Over the last 15 years, IFC has worked with more than 125 financial institutions in 35 countries, to provide over $20 billion of private sector financing.
“We continue to strengthen our partnership with Commercial Bank as we partner with them on an initiative to build their green-finance portfolio,” said Amena Arif, IFC country manager for Sri Lanka and Maldives. “Investments in energy and resource efficiency are not just good for the environment, they are also good for business since they help reduce energy consumption, drive down costs, and make businesses more competitive,” he added.
Commercial Bank of Ceylon, the largest lender in Sri Lanka to SMEs, has an assets in excess of Sri Lankan Rupees 1 trillion and accounts for 4.31 percent of the total market capitalization. It has disbursed Rs 952 billion to the SMEs sector over the past five years.