DFCC Bank has announced a significant initiative to strengthen Sri Lanka’s dairy industry by allocating Rs. 500 million to finance smallholder dairy farmers. This move aligns with the bank’s commitment to supporting sustainable development.
The initiative, spearheaded by DFCC Bank’s MSME (Micro, Small, and Medium Enterprises) Unit, builds on the successful experience of lending to farmers under the USDA-backed Market-Oriented Dairy (MOD) Programme. This special credit line, funded entirely by DFCC Bank, offers crucial support to the sector with concessionary interest rates, aiming to foster growth at the grassroots level, especially among smallholder dairies that form a significant part of Sri Lanka’s dairy industry.
Chandana Wanigasena, Vice President of MSME at DFCC Bank, announced this during the closeout event of the MOD programme, “Sri Lanka Dairy—The Art of the Possible,” held at the Galle Face Hotel. The event celebrated the MOD programme’s achievements in supporting Sri Lanka’s dairy smallholders. Chandana highlighted the progress made by DFCC Bank’s MSME Unit, which has successfully financed over 2,500 dairy farmers through a value chain financing model. This model has significantly contributed to the industry’s growth by transforming dairy farmers into entrepreneurs.
By supporting the DFCC-MOD Dairy Farmer Loyalty Programme and MOD’s proven model of creating dairy entrepreneurs producing 100 litres daily, DFCC Bank aims to enhance the financial sustainability and growth prospects of smallholder dairy farmers. This initiative represents a substantial financial investment in the dairy sector and underscores the bank’s strategic focus on industries with significant economic and social impact in Sri Lanka. Offering financing under concessionary interest rates makes the initiative highly attractive and beneficial for smallholder farmers.
The Market-Oriented Dairy (MOD) Project, based in Sri Lanka, is funded by the United States Department of Agriculture (USDA) ‘Food for Progress’ initiative and implemented by Improving Economies for Stronger Communities (IESC), a Washington DC-based not-for-profit organization.
Through targeted support to drive sustainable development within critical industries in Sri Lanka and a strong emphasis on value chain financing, DFCC Bank is playing a pivotal role in transforming the dairy sector and ensuring its long-term sustainability and prosperity.
Tags: DFCC Bank, dairy farmers, sustainable development, MSME, Market-Oriented Dairy Programme, USDA, Sri Lanka, agricultural financing, smallholder farmers, concessionary interest rates, dairy industry,