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Thursday, 20 September 2012






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To initiate home ownership in country:

DVB signs agreement with ADB for US$ 15 m credict facility

In a bid to develop home ownership across the country, Sri Lanka's youngest Commercial Bank, the DFCC Vardhana Bank (DVB) yesterday, signed an agreement with the Asian Development Bank (ADB) for a $ 15 million credit lending facility. The credit facility is specifically granted to the North and East areas affected by conflict, the South and East of country devastated by the Tsunami and women borrowers and single mothers.

DFCC and DFCC Vardhana Bank Chairman J.M.S. Brito and Asian Development Bank Country Director Rita O’Sullivan exchanging the agreement for a $ 15 million term lending facility. Picture by Nissanka Wijeratne

The 5.0% of loan would be devoted to women borrowers and single mothers in the country.

Speaking at the event, DFCC Vardhana Bank CEO Lakshman Silva, said that ADB's credit facility had a wider audience, with a part of the loan facility will be devoted the women borrowers, North and East areas affected by conflict, south and east of country devastated by the Tsunami, while the rest of the money would be granted to middle income professionals who aspire to have their own houses.

The DVB presence in the country is more than enough to disburse credit facility in a proper manner. ADB has offered this credit line facility on an attractive interest rate which would be much lower than other commercial housing loans offered in the market.The term 'lending facility' by ADB has been received at an opportune moment for DVB, where its loan portfolio could grow above the 18% growth ceiling that had been imposed by the Central Bank of Sri Lanka (CBSL) on the strength of its acquisition of a foreign funding line.

The extra funding ability gives the DVB a distinct competitive advantage above many other commercial banks who have reached their CBSL imposed credit ceiling.

"In Sri Lanka, 80% of the population does not have access to long term finance for housing requirements. The housing shortage is being experienced in many parts of the country, while general loans in Sri Lanka have a very short time period.

"Tenure of this loan is the most important aspect of the credit facility and the ADB through this initiative, hopes to allow more private sector banks to come forward to play a major role in the financial segments of the country," Asian Development Bank Country Director Rita O'Sullivan said.


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