According to the IFC website, the proposed project is a secured, 5-year senior loan of up to US$15mn to Sanasa Development Bank PLC (‘SDB’), a licensed specialized bank (‘LSB’) in Sri Lanka and an IFC client since 2010. This will be one of IFC’s first local currency debt funding in Sri Lanka, and will support the expansion of SDB’s SME portfolio, with 25% earmarked for women-owned SMEs.
SDB was established in 1997, funded by 4,500+ cooperative societies. It was initially a microfinance/retail bank, but has been transforming itself into a SME/retail bank since 2015. IFC supported this initiative by increasing its equity stake to 8.86% (May, 2017) from 2.34%, previously.
There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).
The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.
The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.
SDB has been listed on the Colombo Stock Exchange since May, 2012. It has no identifiable sponsor. The Bank was created by the Sanasa co-operative society movement, but the shareholding of the co-operatives has been diluted to 29%. Development Finance Institutions (IFC & FMO) hold 22%, while other investors hold 50%.
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|-||-||-||-||Sanasa Development Bank Limited||Client||-|
SANASA Development Bank PLC
Mr. Terrance Kumara
Head of Finance
SANASA Development Bank PLC, No. 12. Edmonton Road, Kirulapone, Colombo 06, Sri Lanka
ACCOUNTABILITY MECHANISM OF IFC
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/