Sri Lanka banks financing Indian firms with excess dollar balances
- CNL Reporter
- June 12, 2025
- Banking and Financial
- Sri Lanka
- 0 Comments
Sri Lanka banks are financing Indian business through syndicated loans, using their excess US dollar balances, Prins Perera, Head of Treasury and Investment Banking at DFCC Bank said.Sri Lankan banks, have participated in syndicated loans and financing through the Gujarat International Financial Tec-City (GIFT City) he said.
Investing through the GIFT City has some tax advantages, involving withholding tax.“So our message to the local companies who are planning to have their business expansion in India, we are looking to support those businesses,” Perera told a forum on Indian credit in Colombo.
“And also the Indian companies, those who are borrowing from the international markets in foreign currency.“And in the last three months or six months, we have done a substantial number of transactions in India and we are planning to expand those activities in India because we see the potential for Sri Lankan corporates operating in India as well as the Indian companies in India.”
India’s Satin Creditcare Network Limited, a micro-finance and non-bank lender, raised 100 million dollars through the GIFT City, in loan supported by Standard Chartered Bank in March.
