RDB to spearhead regional growth

The Regional Development Bank (RDB), should be located in the region and not in Colombo as a Wall Street bank, said Secretary to the Ministry of Finance, Dr. P.B. Jayasundara addressing a ceremony to launch the RDB in Colombo on Friday.

He said the primary objective of RDB is to serve the poorer segment of the population in the region and added that the bank should be close to people to serve them better.

P.B. Jayasundara

“The RDB is an outcome of over three years of deliberations and hard work of stakeholders and now with the combined strength the bank will spearhead regional development”, Dr. Jayasundara said.

Foreign funding banks and other donor institutions have been called upon to finance regional development which is essential to alleviate poverty”, he said.

Six regional development banks were merged into a single regional development bank to provide people easy access to finance and thereby alleviate poverty in the regions. The banks amalgamated were the Rajarata, Ruhunu, Wayamba, Uva, Kandurata and Sabaragamuwa development banks.

Chairperson, RDB, Janaki Kuruppu said the RDB will focus on developing the SME sector entrepreneurs who have no access to finance and as a result have abandoned industries.

“Inculcating the habit of savings among schoolchildren and minors, providing a good return to deposits and empowering the rural masses are the key objectives of RDB”, she said.

RDB has an asset base of Rs. 42 billion and an islandwide network of 251 branches. Over 2,300 trained personnel are employed and the bank plans to expand its services to the North and the East. LF