BOC to get $ 115 m foreign funding next week

State-owned industry giant Bank of Ceylon (BOC) is slated to get $ 115 million worth of overseas funding (over Rs. 23 billion) by next week, a move which is expected to boost the country’s foreign exchange base. 

Bank sources told the Daily FT that $ 70 million will be received from China Development Bank (CDB) as the second and final tranche of $ 140 million in long-term funding, whilst another $ 45 million will be received from the Asia Infrastructure Investment Bank (AIIB) also being the balance amount of an original $ 90 million long-term financing. 

The world’s largest development banking supporter CDB’s funding was for BOC’s general lending requirements, whilst AAIB money was to support COVID pandemic-hit micro, small and medium enterprises (MSMEs). The latter was from AIIB’s ‘COVID-19 Emergency and Crisis Response Facility’ under which Sri Lanka was supported with $ 180 million with funds shared by BOC and People’s Bank.

The receipt of a second tranche of funds was following successful use, as well as disbursement, of funds in the first phase, BOC sources added. 

BOC last year disbursed over Rs. 128 billion to the SME sector via its “Divi Udana” scheme, which offered a basket of 24 loan schemes targeting critical industry sectors such as agriculture, fisheries, animal husbandry and exports among others.

It also emerged as the leading lender under the ‘Saubagya’ concessionary loan scheme announced by the Central Bank, disbursing Rs. 39.1 billion of working capital financing through 18,589 facilities.