International Finance Corporation (IFC), a member of the World Bank Group, has joined hands with Sri Lanka’s leading local apparel manufacturer Hela Clothing to boost trade for Sri Lanka’s apparel industry through a trade-supplier finance facility. With this, Hela Clothing becomes the latest apparel company in the country to join IFC’s Global Trade-Supplier Finance program.

IFC will provide a supplier finance credit line to Hela Clothing against receivables from selected international buyers and provide working capital directly to the company. Supplier finance is a scalable and manageable method for suppliers in emerging markets to access affordable financing against receivables from customers. The product offers suppliers an additional source of flexible, affordable funding and may allow the buyer to negotiate longer payment terms or better prices.

Established in 2010, the IFC Global Trade Supplier Finance program is a $500 million multi-currency investment and advisory program that provides short-term finance to emerging market suppliers and small and midsize exporters. The program also helps banks that offer supply-chain finance to increase their presence in emerging markets. The GTSF program offers differentiated pricing based on the social and environmental performance of suppliers.

Sri Lanka is a priority country for IFC. IFC’s committed portfolio in Sri Lanka is now $230 million and covers projects across a range of sectors including infrastructure, tourism, renewable energy, finance and healthcare.

It 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.