The United States government disbursed $150 million in financing to DFCC Bank on November 12 to support sustainable development of Sri Lankan community-based businesses, a press statement issued by US Embassy in Colombo said.
This is the largest loan disbursement by the U.S. Development Finance Corporation (DFC) for Sri Lanka, and it is part of a $265 million commitment designed to support the local Micro, Small, and Medium Enterprise (MSME) sector, especially women-led enterprises in Sri Lanka, the embassy asserted.
The rest of the statement reads further as follows;
Through this partnership, DFCC Bank will provide lending solutions in priority sectors and support Sri Lanka’s commitment to achieve the United Nations Sustainable Development Goals, particularly enhancing the country’s efforts to promote women entrepreneurship. A portion of the DFC loan will be directed towards MSMEs owned or led by Sri Lankan women to tackle one of the biggest issues faced by women entrepreneurs: limited access to finance.
Disbursing the funds, U.S. Chargé d’Affaires to Sri Lanka and Maldives Martin Kelly said: “Gender equity and equality are key aspects of the bold new global infrastructure initiative Build Back Better World (B3W) that President Biden and G7 partners launched earlier this year. We look forward to seeing this funding make a difference for Sri Lankan communities, for small and medium business, and for women entrepreneurs as we all recover from the pandemic.”
The U.S. Development Finance Corporation (DFC) is the development finance institution of the United States government, primarily responsible for providing and facilitating the financing of private development projects in countries around the world. This assistance is part of DFC’s 2X Women’s Initiative which has mobilized USD 7 billion in private sector investment toward women’s economic empowerment and aims to provide an additional USD 12 billion by 2025 to advance gender equity in emerging markets worldwide.