IFC, a member of the World Bank Group, is investing $20 million in Sri Lanka s Cargills Foods Company (Private) Limited, the retail subsidiary of Cargills (Ceylon) PLC. The investment will help the company expand operations, reach more farmers, and improve efficiency of its supply chains.
IFC s investment, for an eight percent equity stake in the company, will also create jobs and opportunities for skills development for rural youth. It will boost inclusive growth by expanding access to markets for farmers as the company grows its retail network across Sri Lanka.
IFC s investment, at a time when our retail segment is facing challenges from macro and fiscal environments, is a strong endorsement of Cargills Food City s business model and business ethos of the Group. Cargills Food City is built on the principles of creating value for consumers, producers, and the community, and is aligned with the country s development agenda, said Ranjit Page, Deputy Chairman of Cargills (Ceylon) PLC.
Sri Lanka s modern trade sector currently constitutes less than 20 percent of total trade in the country, significantly lower than in other emerging markets. In an environment of steady economic development, the country s retail sector has significant potential, and is poised for growth.
Cargills Foods owns and operates Food City, Sri Lanka s largest private retail chain. It sources produce from over 10,000 Sri Lankan farmers, and employs 5,800 people across its network.
Cargills Foods has a unique opportunity to improve the lives of a large number of people employed across its supply network, said Adam Sack, IFC Country Manager for Sri Lanka and Maldives. In addition to its investment, IFC will also bring global expertise and industry knowledge to help the company improve efficiency and standards throughout its supply chain.
Sri Lanka is a priority country for IFC. With this commitment, the committed portfolio in Sri Lanka is now $596 million and covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and healthcare. IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance, and by offering capacity-building and training opportunities.