Colombo, Sri Lanka, March 22, 2016 —
IFC, a member of the World Bank Group, with the support of the Government
of Canada, will invest $15 million in Sri Lankan retail chain Richard Pieris
Distributors Limited. The investment will help the company expand its modern
retail network, support job creation, and develop local supply chains.
It will also be used to install solar panels on company store rooftops.
The financing consists of a $7.5 million
loan from IFC’s own account and a further $7.5 million from the IFC-Canada
Climate Change Program. The Program promotes private sector financing for
clean energy projects.
“IFC’s support comes at an important
time as we step up our operations and widen our network of branches across
the island,” said Dr. Sena Yaddehige, Group Chairman of Richard Pieris
& Co. PLC. “Through this planned expansion, we will contribute towards
improving food safety and consumer access to better quality food products
at affordable prices.”
The investment into Richard Pieris Distributors
will help create over 800 jobs directly and an even larger number of jobs
indirectly by 2020. It will also help the company adopt green building
measures and promote climate-smart technologies.
The Government of Canada's contribution
to the IFC-Canada Climate Change Program has helped make this financing
package viable. To date, Canada has provided close to 271 million Canadian
dollars to the program, to climate change investments that are generating
significant environmental and economic benefits in developing countries.
“The Government of Canada is pleased
to invest in renewable energy and green jobs in developing countries. Through
its partnership with IFC, Canada is working to foster sustainable economic
growth and contribute to reduce global greenhouse gas emissions, setting
the stage for a cleaner, more prosperous global future,” said the Honorable
Catherine McKenna, Canada's Minister of Environment and Climate Change.
Sri Lanka’s modern trade sector currently constitutes less than 20 percent
of total trade in the country, which is significantly lower than other
emerging markets. The country’s retail sector has significant potential
to contribute towards economic growth in an environment of steady economic
“As the sector grows, companies like
Richard Pieris Distributors are in a prime position to expand their networks,
boost employment opportunities through small businesses in their supply
chains, and create value for consumers,” said Amena Arif, IFC’s Country
Manager for Sri Lanka and Maldives.
Sri Lanka is a priority country for
IFC’s work in South Asia. IFC’s committed portfolio in Sri Lanka 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.
About Richard Pieris
Richard Pieris & Co. PLC is a diversified
business conglomerate with a rich history of 83 years. Its flagship brand
"Arpico" is one of the most powerful local household brands in
Sri Lanka for over 50 years, serving the community with a diverse range
of products across many sectors such as manufacturing, plantations, financial
services, exports, FMCG, construction, logistics, educational services
& retail. The retail sector led by its flagship brand "Arpico
Supercenters" operates one of the largest modern trade chains in the
country. A diverse melting pot of talent, comprising a workforce of over
30,000, Richard Pieris & Company PLC is one of the largest employment
providers in the private sector in Sri Lanka.
About the IFC-Canada Climate Change
The IFC-Canada Climate Change Program
promotes private sector financing for clean energy projects and received
funding under Canada’s fast-start financing to catalyze investments in
renewable, low-carbon technologies that would not otherwise happen.
Canada’s Investment in Global Climate
The Government of Canada is committed
to support climate change action and will deliver $2.65 billion between
2015 and 2020 to support developing countries’ transition to low carbon
economies and adapt to the impacts of climate change. For more information,
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org