Nestlé Lanka partners Commercial Bank to drive sustainable dairy farming

Thursday, 9 May 2024 01:14 - - {{hitsCtrl.values.hits}}

From left: Commercial Bank Manager – Development Credit Prasanna Jayamaha, Senior Manager – Development Credit Malika De Silva, Deputy General Manager – Personal Banking Delakshan Hettiarachchi, Chief Operating Officer S. Prabagar, Managing Director/CEO Sanath Manatunge, Nestlé Dairy Farmer P.S. Asela Pushpakumara, Nestle Lanka Managing Director Bernie Stefan, Senior Manager – Agri Services Aruna Kumara, Director – Finance Kumudu Dias, Treasury Head Manosh Kulasena, and Director – Dairy Ruwan Welikala

Nestlé Lanka and the Commercial Bank of Ceylon have partnered to launch an initiative to support dairy farmers with concessionary finance to expand their operations and increase milk yield, in line with the purpose of implementing regenerative agricultural practices to reduce greenhouse gas emissions in the dairy value chain.

To support Sri Lankan dairy farmers facilitate the necessary conditions and equipment in their farms to increase yield per cow, Nestlé Lanka formed a partnership with Commercial Bank to put together a value chain financing program aimed at providing farmers with tailor-made financial solutions at a nominal interest rate. As part of the financing program, Commercial Bank will also cover community development initiatives such as improving financial literacy and technical awareness of dairy farmers to support in uplifting their livelihoods. Nestlé aims at reaching 300 farmers through the financing program by year end, from which 25 farmers are selected to benefit from the rollout of the first phase.

Nestle Lanka Managing Director Bernie Stefan said, “In line with our steadfast commitment towards developing Sri Lanka’s dairy industry, we consistently help our farmer network to build a livelihood that is both profitable and sustainable. We are excited to work closely with the Commercial Bank of Ceylon on this financing program, to not only support in uplifting the livelihoods of our dairy farmers, but also have a positive impact on the planet. Staying true to our purpose of ‘Unlocking the power of food to enhance quality of life for everyone, today and for generations to come’ we will work together with our partners and dairy farmers as we progress in our ambition of achieving net zero emissions by 2050.”

Commercial Bank Managing Director/CEO Sanath Manatunge said, “As the largest private bank in Sri Lanka, Commercial Bank has always recognised the importance of providing inclusive financing solutions to rural communities of Sri Lanka that are mainly engaged in agriculture, livestock and micro businesses. We have set up special Agriculture and Microfinance Units (AMFU) to exclusively cater to this segment. The Bank is in the process of further expanding its AMFU operation to stimulate economic growth and to promote self-sufficiency in agri produce. A supply chain financing program of this nature involving two highly reputed companies is the best response to the financial exploitation that is prevalent in under banked and unbanked communities. It can enable these communities to access the formal financial system and be exposed to an environment that is catalytic in building their competitiveness.”