Commercial Bank of Ceylon

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Through its equity investment IFC will buy a large block of shares from a government owned institution which will reduce government shareholding in CBC. By providing funding for a portion of the shares of CBC for its employees, IFC will help to align employee and shareholder interests, by making the former part owners of the bank. The provision of longer term financing to a strong financial institution which operates in a difficult macro-economic environment will allow CBC to extend the maturities of its loans to sub-borrowers and lengthen the maturity of the Bank’s liabilities. In addition, the project would facilitate the privatization of Sri Lanka's largest insurance company and also provide a demonstration effect to strengthen the government's privatization program.