The Asian Development Bank (ADB) has approved an equity investment to help solve Sri Lanka's chronic housing shortage.
The ADB, a regional development bank owned by 59 member governments, will be investing up to US$360,000 in the proposed NDB Housing Bank, a new market-based financial institution in Sri Lanka.
It will provide housing finance and help alleviate the housing shortage, which is widespread among poor and middle-class Sri Lankans in Colombo and other cities.
The new project initiated by the NDB Housing Bank is the first private sector housing bank investment in Sri Lanka and would be a model of similar projects in the region.
'ADB's participation will help provide catalytic support for NDB Housing Bank, particularly when it is seeking additional long-term funds, and facilitate the broadening and deepening of the Sri Lankan Capital market,' Bob Finlayson, an Investment Officer in ADB's Private Sector Group said.
The main sponsor in NDB Housing Bank is the National Development Bank of Sri Lanka, which is receiving technical and equity support from the key housing finance institution in India, the Housing Development Finance Corporation (HDFC), with further investment support from the Employee Provident Fund and Eagle Insurance.
