NDB throws its weight behind for Sri Lanka’s post-COVID revival

NDB Chairman Eshana De Silva greets Punya Athukorala of Linen Atiler after presenting the indicative offer letter of the ‘Jayagamu Sri Lanka’ loan scheme – Pix by Ruwan Walpola 

• Launches unique and multifaceted ‘Jayagamu Sri Lanka’ initiative to help exporters and inventors
• To invest Rs. 500 m to Rs. 1 b as concessionary lending support to boost much-needed foreign exchange via higher exports and commercialise innovation
• Talks ongoing with ADB and IFC for more funding lines
• Special focus on empowering country’s backbone – small and medium enterprises
• Draws in nearly 10 non-financial service and solution partners to help SMEs and new exporters with knowledge, marketing, insurance and technology support

NDB is throwing its weight behind the country’s post-COVID-19 revival challenge with the launch of the unique and multifaceted ‘Jayagamu Sri Lanka’ initiative to support exporters and inventors and thereby boost foreign exchange and secure jobs. 

The move is in recognition of the potential for transformation in the country’s exporters, entrepreneurs and inventors and support and enhance their efforts for socioeconomic development. 

The special focus of the initiative is the development of and support to the small and medium enterprises (SMEs), the country’s economic backbone and the inspiration behind the establishment of NDB originally in 1979. 

Branded ‘NDB Jayagamu Sri Lanka’, the initiative is likely to reinforce NDB’s roots and once again rejuvenate the SME focus which is critical especially in the aftermath of COVID-19 impact and challenges.

“We are investing initially between Rs. 500 million and Rs. 1 billion to provide concessionary financing under this scheme for any exporter and innovator. We will process loan applications and give a yes or no within seven working days. Financing will depend mainly on capital expenditure and working capital requirements,” NDB Chairman Eshana De Silva told the Daily FT. 

“We are in talks with the Asian Development Bank and the International Finance Corporation of the World Bank to secure more funding lines,” he added.

“We introduced this initiative to lend a helping hand to our fellow Sri Lankans as well as to boost the country and its economy. The post-COVID world requires the contributions of every Sri Lankan, and this initiative stands as a sign of the bank’s commitment towards the development of Sri Lanka as well as developing our exporters and innovators,” NDB Chairman emphasised.

“We are rolling out the red carpet for the SMEs and Jayagamu Sri Lanka is NDB’s contribution to the development of the nation and the economy in challenging times following COVID-19,” De Silva added.

Financial assistance for exporters in Sri Lanka will come in the form of working capital finance to meet the funding requirements of exporters along with facilities such as pre and post-export finance, and other trade related facilities such as bank guarantee, letters of credit revolving STLs etc. and with FOREX facilities, Islamic banking facilities etc. 

Capital expenditure financing will also be offered along with benefits such as concessionary lending rates, funding based on higher LTV on immovable/movable security, funding on acceptable personal guarantees or SLECIC Guarantee, a 25% waiver on all bank fees and charges and obtaining of buyer ratings through NDB Bank from internationally recognised organisations.

Whilst extending concessionary financing, NDB is going that extra mile of support by bringing in nearly 10 non-financial service and solution partners to help with knowledge, marketing, insurance and technology support among others on a priority basis and at special rates. 

Initial partners are the Export Development Board (EDB) from where product development, marketing, advisory and standards support can be obtained; Ceylon Chamber of Commerce offering business networking, training support, Sri Lanka Export Credit Insurance Corporation (SLECIC) offering pre and post shipment insurance support, and Sri Lanka Insurance Corporation and Fairfirst Insurance (Both will offer a first shipment insurance cover of up to $ 30,000). 

World famous ecommerce brand Alibaba-linked Daraz and another e-platform Code360 will extend e-marketing support with 190 countries and 40 different industries. Codevus Ltd. will offer Enterprise Resource Planning (ERP) solution support whilst Asian School of BiZnomics via Global Manchester UK will offer enhance management and operational competencies. 

For inventors, dedicated and qualified officers at NDB will provide legal support on patenting rights as well as support for commercialisation of inventions.

The entire gamut of solutions is based on feedback from SMEs, exporters – both existing and emerging and inventors, NDB Chairman De Silva emphasised adding decades of experience and expertise within NDB will be harnessed to empower SMEs. 

NDB Group Director and CEO Dimantha Seneviratne said Jayagamu Sri Lanka will fill a vacuum that exists in the market today in empowering upcoming entrepreneurs, exporters and innovators which is essential to help set the country on a new growth trajectory.

“One thing COVID has taught us is; we cannot build the future on old foundations; the future belongs to the thought leaders of tomorrow, innovators and entrepreneurs,” he said.

“NDB has worked tirelessly towards improving social resilience; working with women entrepreneurs, driving financial inclusivity, enabling SMEs expand their horizons through e-commerce,” Seneviratne added.

He also pointed out that the supply chain disruption brought about by the global impact of the COVID-19, presents a unique window of opportunity for countries to enhance their export markets. Companies that are looking to diversify their supply chain, to move sourcing out of China and those companies who want to setup in places other than China are some of the opportunities we should target. 

“Jayagamu Sri Lanka aims to assist Sri Lankan entrepreneur’s capture these opportunities,” Seneviratne emphasised.