By: Staff Writer
June 12, Colombo (LNW):In a timely financial development for Sri Lanka’s small and medium-sized enterprise (SME) sector, DFCC Bank has secured a $12 million funding facility from European impact investment platform Symbiotics, with a strong focus on renewable energy and solar adoption. The funding, consisting of a $6.25 million tranche in U.S. dollars and an LKR-equivalent of $5.75 million, will support clean energy projects and empower SMEs adopting sustainable business practices.
The facility was structured by Symbiotics through the issuance of bonds specifically for DFCC Bank, which are now listed on the Luxembourg Stock Exchange under an International Securities Identification Number (ISIN). TSW Capital Services Ltd., based in India, served as the transaction advisor to DFCC Bank.
DFCC Bank has long supported sustainable and inclusive finance. This latest initiative not only underscores the institution’s commitment to environmental sustainability but also provides critical access to affordable finance for local enterprises. “This funding enables us to direct international capital into local projects that matter – clean energy, small businesses, long-term growth,” said Prins Perera, DFCC Bank’s Senior Vice President – Head of Treasury, Investment and Wholesale Banking.
He highlighted the importance of the facility, especially given the current challenges Sri Lanka faces in accessing foreign funding. Notably, a portion of the funding was disbursed in Sri Lankan Rupees, allowing DFCC Bank to minimize foreign exchange risk and pass on the benefit of stable, lower-cost financing to local borrowers. This approach sets a rare precedent in international borrowing for Sri Lankan institutions and could serve as a model for similar deals in the future.
The funding aligns with Sri Lanka’s national goal of generating 70% of its electricity from renewable sources by 2030, reinforcing DFCC Bank’s role in supporting green transformation. It also directly contributes to the United Nations Sustainable Development Goal 7 (Affordable and Clean Energy) by improving local access to sustainable energy financing.
More broadly, the initiative strengthens DFCC Bank’s growing green finance portfolio, which supports climate-friendly economic development, particularly in the underserved SME sector. The bank continues to act as a bridge between global impact capital and Sri Lankan enterprises, playing a pivotal role in the country’s transition towards a low-carbon, climate-resilient economy.
