Sri Lanka helps fund Commonwealth small states trade finance facility
ECONOMYNEXT – Sri Lanka has pledged financial support to setup the Commonwealth Small States Trade Financial Facility meant to help small, vulnerable countries access global markets.
Commonwealth small states are expected to have access to USD 300 million of incremental trade finance over a three-year period from this programme, a statement said.
As an anchor investor, Sri Lanka has donated more than USD 1.5 million towards this fund since 2015.
Minister of Finance and Media Mangala Samaraweera signed the agreement for the fund on the sidelines of the ongoing Commonwealth Heads of Government Meeting in the United Kingdom.
“Initiated at the CHOGM 2013 Summit in Colombo, the Commonwealth recognised the importance of trade finance for the development of Small States and introduced this innovative blended finance support totalling USD 5 million,” the statement said.
The other countries supporting this endeavour by pledging financial commitments are India, Mauritius and Malta.
Samaraweera said that Sri Lanka’s pledge towards this scheme reflects its commitment towards espousing the values and the spirit of the organization in assisting the more vulnerable members in the Commonwealth to develop their economies.
The fund is aimed at states whose populations’ productive capacities and domestic markets are limited.
(COLOMBO, April 18, 2018)