Extended Credit

Sri Lanka’s DFCC Bank is in line to pick up over US$ 250 million worth of concessionary funding lines this year, as it looks for ways to expand its loan book, a senior official said. Sri Lanka’s DFCC Bank is in line to pick up over US$ 250 million worth of concessionary funding lines this year, as it looks for ways to expand its loan book, a senior official said. Germany’s flagship public development bank Kreditanstalt für Wideraufbau (KfW), is leading the way, stumping up € 20 million for development finance activities.

The European Investment Bank (EIB) is in the process of finalising a € 100 million loan agreement. A portion of the EIB credit line forms part of US$ 3 billion worth of assistance pledged by European Union donors towards Sri Lanka’s tsunami relief work.

The loan agreement with state-run KfW will be signed shortly, while the EIB credit line will be wrapped up in the coming months, says Dheerendra Abeyaratna, DFCC’s Senior Vice President (Treasury & Resource Management).

Besides these credit lines, a further US$ 90 million will be available for small and medium enterprises, while the Dutch government has also promised US$ 7.5 million towards similar proje