Sanasa Development Bank PLC
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
SANASA Development Bank PLC or SDB bank is a licensed specialized bank in Sri Lanka that was founded in 1997 by the federation of thrift and credit societies in the country and had been listed in the Colombo Stock Exchange since 2012. The bank currently has an approx. 1% market share in the banking industry with a balance sheet of LKR160Bn and over 600K customers served through its 94 branches across the island. The bank focuses on the micro and retain finance segments, with deep roots in rural Sri Lanka.
What is our funding objective?
To co-fund external consultants who will support SDB develop a customer proposition for cooperatives and their member base with the aim of banking to more private individuals and the agriculture sector. The first phase of the project will focus on the design & detail strategic initiatives (cooperative linkages, Agri financing including value chain financing, digitisation etc) and support business continuity improvements within SDB (credit policies & procedures, strengthening IT, etc). The second phase will include implementation support, and ongoing development on all aspects initiated during phase 1.
Why do we fund this investment?
This project aims to assist SDB in achieving its goal of expanding its reach across Sri Lanka, utilizing its ties to the cooperative sector to expand its service offerings to a broader segment of the Sri Lankan population and economy. This will empower SDB to continue catering to rural communities where access to credit is restricted and offer relatively lower interest rates compared to other banks. Consequently, this project enhances financial accessibility for the underserved, fostering economic development and job creation in Sri Lanka, aligning with FMO’s focus on SDGs 10 and 8.
More investments
| Date | Total FMO financing |
|---|---|
| 8/20/2021 | USD 2.13 MLN |
| 5/27/2020 | LKR 121.65 MLN |
| 11/21/2022 | USD 6.00 MLN |
| 8/20/2021 | USD 2.04 MLN |
| 12/15/2016 | LKR 292.52 MLN |
| 2/16/2017 | EUR 0.01 MLN |
- Region
- Asia
- Country
- Sri Lanka
- Sector
- Financial Institutions
- Publication date
- 7/4/2024
- Effective date
- 5/28/2024
- Total FMO financing
- EUR 0.18 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C