By: Staff Writer

July 01, Colombo (LNW): Sri Lanka’s dairy industry is to be revitalized rescuing from the brink of collapse, with nearly 14,000 small and medium-scale farms having ceased operations due to exceedingly high production costs.

Marking a milestone initiative to strengthen Sri Lanka’s dairy industry, DFCC Bank has allocated Rs. 500 million to finance smallholder dairy farmers, in line with its commitment to supporting sustainable development.

This dedicated initiative by DFCC Bank is the brainchild of the bank’s MSME (Micro, Small, and Medium Enterprises) Unit and is built upon the successful experience of lending to the beneficiary farmers of the USDA-backed Market-Oriented Dairy (MOD) program.

This special credit line, made available entirely by DFCC Bank, aims to provide crucial support to the sector under concessionary interest rates, fostering growth at the grassroots level, particularly amongst smallholder dairies, which form a significant part of Sri Lanka’s dairy industry.

DFCC Bank Vice President MSMEs Chandana Wanigasena made the announcement during the closeout event of the Market-Oriented Dairy (MOD) program. The “Sri Lanka Dairy—The Art of the Possible” event took place recently celebrating the MOD program’s achievements supporting Sri Lanka’s dairy smallholders.

At the event, Wanigasena highlighted the remarkable progress made by DFCC Bank’s MSME Unit, which has successfully financed over 2,500 dairy farmers through a value chain financing model supporting MOD’s efforts to transform dairy farmers into entrepreneurs.

This model has significantly contributed to the industry’s growth, exemplifying an effective and scalable approach to agricultural financing.

“DFCC Bank allocating this substantial fund underscores the BANK’S unwavering commitment to the dairy sector. By supporting the proposed DFCC-MOD Dairy Farmer Loyalty Programme and the MOD’s proven model of creating a pool of dairy entrepreneurs producing 100 litres daily, we are taking concrete steps to enhance smallholder dairy farmers’ financial sustainability and growth prospects,” Wanigasena said.

The initiative demonstrates a substantial financial investment into the dairy sector and highlights the bank’s strategic focus on critical industries with the potential for significant economic and social impact in Sri Lanka.

Offering financing under concessionary interest rates makes the initiative highly attractive and beneficial for smallholder farmers. The focus on value chain development, the adoption of 10 Key Performance Indicators (KPIs), and support for MOD’s Climate-Smart Dairy (CSD) initiative further emphasise the bank’s commitment to sustainable agricultural practices.

The Market-Oriented Dairy (MOD) project, based in Sri Lanka, is funded by the United States Department of Agriculture (USDA) ‘Food for Progress’ initiative, and implemented by Improving Economies for Stronger Communities (IESC), a Washington DC-based not-for-profit organisation.

The project’s efforts to double the milk production of participating dairy farmers to enhance their technical knowledge and create an entrepreneurial, business-oriented mindset helped farmers make intelligent investments, and the bank assessed and lent with confidence.

Through targeted support to drive sustainable development within critical industries in Sri Lanka and a strong emphasis on value chain financing, DFCC Bank plays a pivotal role in transforming the dairy sector and ensuring its long-term sustainability and prosperity.

By: Staff Writer

July 01, Colombo (LNW): Women engaged in the MSME sector together with the UNDP and other key stakeholders from the government, private sector, banking and finance sector, civil society organisations (CSOs), academia has embarked on a mission  to set up and sustain a coalition dedicated to implementing a holistic ‘system change’ approach.

The aim is to understand and take action on what it takes to transform the lives of women in the sector, their communities and the country as a whole

The launch of “Women Mean Business: A Coalition for Action” targets to address the challenges faced by micro, small, and medium women entrepreneurs in Sri Lanka, promoting inclusive growth.

This coalition includes various stakeholders such as entrepreneur networks, manufacturing organizations, business development service providers, trade unions, ministries, the Central Bank of Sri Lanka, financial institutions, CSOs/NGOs, development partners, academia, policymakers, media, IT support institutions, steering committees, and other coalitions.

Their collective goal is to find practical, strategic, and sustainable solutions to improve women’s access to finance and recognize their contributions to the economy.

The coalition facilitates inter-agency and interdisciplinary coordination and collaboration, creating opportunities to challenge systemic discrimination against women-led MSMEs, particularly in accessing financial resources

At the launch event, women entrepreneurs from various provinces shared their experiences and views on accessing financial products and services.

The dialogue highlighted the operational challenges of financial institutions in providing services to MSMEs and explored ways to create an inclusive and equitable financial system.

Despite a female literacy rate of 95%, only 25% of entrepreneurs in the MSME sector are women, and only 32% of women are in the labor force.

Women also face higher unemployment rates and spend considerable time on unpaid housework and care work. Moreover, only 16% of privately owned land is owned by women, and 20.4% of women have experienced intimate partner violence.

Addressing these systemic issues requires a cohesive ecosystem, which has been lacking due to fragmented efforts by various entities.

The coalition aims to create a resilient system that works for women and can withstand external risks, including those induced by climate change.

The transformation must occur piece by piece, addressing the elements that prevent equitable access to finance for women in the MSME sector. This approach aims to create a domino effect, enabling women to sustain their businesses and contribute to long-term prosperity.

Chrysalis CEO Ashika Gunasena emphasized the organization’s commitment to inclusive growth by addressing the challenges faced by marginalized women and youth.

Chrysalis, along with government, private sector, funders, civil society, and academia partners, seeks to ensure meaningful participation of women and youth in Sri Lanka’s inclusive growth. UNDP, a strategic partner in this initiative, recognizes that economic independence is crucial for gender equality. UNDP Resident Representative Azusa Kubota highlighted the importance of addressing the root causes of discrimination based on various intersecting identities.

July 01, Colombo (LNW): The Ministry of Finance has clarified that whilst debt relief provided by official creditors through maturity extensions and interest rate reductions does not immediately impact the nominal debt stock, it significantly reduces future budget deficits and subsequent additions to the debt stock.

In a statement aimed at informing the public about agreements signed on June 26, the Ministry explained that interest rate reductions will lower Sri Lanka’s future budget deficits, thereby reducing debt flow.

Maturity extensions will create room for economic growth and improved debt service capacity, helping to reduce the debt-to-GDP ratio in line with IMF Debt Sustainability Analysis (DSA) targets, the statement added.

“The nominal debt stock is not a useful measure of debt sustainability. This is why the IMF’s DSA targets focus on the debt-to-GDP ratio and other debt flow measures such as Gross Financing Needs and Forex Debt Service as a share of GDP,” the Ministry stated.

It further noted that the nominal debt stock, whether in Rupee or Dollar terms, will continue to rise as long as the country has a budget deficit, which is a common occurrence globally.

Ensuring debt sustainability requires maintaining a primary budget surplus through recent fiscal reforms and debt restructuring to meet DSA targets, thus restoring debt sustainability.

Regarding future steps, the Ministry outlined that the final restructuring agreement with the Official Creditor Committee (OCC), as reflected in the OCC Memorandum of Understanding, will be converted into individual bilateral agreements with each OCC member.

In parallel, Sri Lanka and the Export-Import Bank of China will conclude domestic regulatory formalities to implement the Amendment Agreements, facilitating the official restructuring process.

“The successful implementation of restructuring agreements with official creditors will boost negotiations with commercial creditors,” the Ministry stated.

It added that Sri Lanka remains engaged with its bondholders and their advisers, aiming to achieve a restructuring agreement that meets DSA targets and is comparable to those reached with the OCC and the Export-Import Bank of China.

As of now, the domestic debt restructuring has been completed, and the official restructuring agreements have been concluded, leaving only the external commercial debt restructuring to be finalised to complete the overall debt restructuring process.

July 01, Colombo (LNW): Sri Lanka’s leading apparel-tech conglomerate, MAS Holdings, has secured Cabinet approval to establish the MAS Athlete Training Academy, marking the country’s first large-scale Public-Private Partnership (PPP) aimed at developing future Olympians.

The academy, set to officially launch on July 8, involves an investment exceeding Rs. 550 million over eight years. It is designed to nurture and support young athletes with the goal of representing Sri Lanka at the 2028 Los Angeles Olympics and the 2032 Brisbane Olympics.

The programme includes specialised training, world-class athletic gear, international exposure, nutritional and educational support, as well as direct funding and equipment for athletes and their coaches.

The MAS Athlete Training Academy is a collaborative initiative that involves the Ministry of Education, Ministry of Sports, National Olympic Committee, Sri Lanka Athletics Association, and the Sri Lanka Olympian Association.

The academy will conduct specialised testing and selection camps to identify and develop talented athletes from schools nationwide.

“Given Sri Lanka’s history of Olympic success in athletics and the considerable potential of athletes from rural areas, we felt it was time to make a substantial investment to harness their talent and prepare them for international success,” said MAS Holdings Co-Founder & Chairman Mahesh Amalean.

Following a comprehensive evaluation process at the all-island school games in May 2024, the initial group of 56 athletes, consisting of 24 girls and 32 boys, has been selected from nine provinces.

These athletes will compete in various track and field events, including short, mid, and long-distance races. Their performance and training metrics will be monitored using a state-of-the-art digital app.

“Our aim is to provide a well-rounded development environment for these young athletes. By integrating top-tier training, international exposure, educational and nutritional support, we aim to elevate grassroots talent to the global stage, ushering in a new era of athletic excellence in Sri Lanka,” said Isuru Gunaratne, General Manager – Strategic Planning, MAS Holdings.