Member of the World Bank Group, International Finance Corporation (IFC) is set to invest USD 175 million in John Keells Holding (JKH) to expand its supermarket chain in Sri Lanka and help fund the expansion of refurbishment of hotel properties in Sri Lanka and the Maldives.

The investment will also boost the supply of “green” hotels in the Maldives to meet growing demand.

The USD 175 million long term investment is IFC’s largest in Sri Lanka in 50 years of work in the country and will be the first supporting investments in the Maldives in ten years.

A statement issued by the IFC said that the move is intended to provide JKH the flexibility and agility to fund its investments in an optimal manner while providing additional support to the Group’s liquidity position. Overall, JKH’s expansion plans for its supermarket and hotel operations will generate significant jobs over the next five years.

Chairman and CEO of JKH, Krishan Balendra said that he believes partnering with an internationally reputed financial institution such as IFC at this juncture of time, is a vote of confidence for JKH and the country.

“Sri Lanka's growth prospects in the medium to long-term remain positive and we are confident that, as always, we have the strength and resolve to keep moving forward with our investment pipeline despite the current period of unprecedented challenges where the outlook is now more positive.” He said.

With tourism being a vital area for both countries, the investment will help create much needed direct and indirect jobs as well as generate considerable foreign exchange. In addition, as a longstanding partner since 1999, this investment in JKH will be used to support the Group’s plans to open about 100 new supermarkets in Sri Lanka over the next three to five years, with a focus on less developed regions – a move that will benefit micro, small and medium sized enterprises as well as farmers who will become part of the supply chains to the new stores.

IFC Country Manager for Sri Lanka and the Maldives, Amena Arif said that IFC support will enable JKH, as one of the largest and most reputable businesses in Sri Lanka, to continue to invest, and ultimately create more jobs and work for small and medium sized businesses despite the challenging economic headwinds and uncertainty over COVID-19 and it will also send a strong and positive message to the investor community that capital investments in Sri Lanka and Maldives are viable at this challenging time and are important to help the economies and the community to build resilience for the future.