• Sri Lanka
Where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 1, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
NDB Zephyr Partners
The holder of the loan, grant, or other investment.
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Small & Medium Enterprises
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Aug 30, 2019

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

According to the bank website, "FMO is participating in the first close of the Emerald Sri Lanka Fund I, thereby ensuring that the fund will be successfully launched. FMO's commitment may serve as an additional "stamp of approval" for the fund and may help attract commercial interest in the fund. FMO will also add non-financial value to the fund, by supporting in the implementation of an environmental and social management system.

Sri Lanka is a post-conflict country, without an established private equity industry. While Sri Lankan SMEs are expected to benefit from favorable economic conditions, the growth of these businesses will be constrained by the lack of access to equity. Emerald Sri Lanka Fund I will be the largest private equity fund dedicated to Sri Lanka. As the fund has a single focus on the Sri Lankan SME sector, it will play an important role in providing this required capital and thus helping to stimulate economic growth."

Investment Description
  • Netherlands Development Finance Company (FMO)
Financial Intermediary
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds.
Private Actor Relationship

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 financed by the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The relationships listed below contain information about the high-risk subprojects of IFC and FMO's financial intermediary investments made from 2017 through 2020, and any associated ring fences.

The database 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.

For more information, please review our Methodology.

Private Actors
Private Actors Description

According to FMO, "the Emerald Sri Lanka Fund I is managed by NDB Zephyr Partners. The fund is a joint venture between NDB Capital, the investment banking arm of National Development Bank PLC, and Zephyr Management, an international fund management group with strong emerging markets credentials. The fund was established to provide risk capital to small- and medium-sized enterprises (SMEs), typically in sectors in the Sri Lankan economy where high growth is foreseen."

Contact Information

No project-specific contact information available at time of writing.


Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism