IBSL Project Finance program for Lankaputhra Bank

The Institute of Bankers of Sri Lanka (IBSL) conducted a program on Project Finance and Credit approval for senior employees of Lankaputhra Bank, a new development bank which commenced operations recently.

Gamini Sarath, CEO/Director General of IBSL stressed the need to understand and develop the key skills of financial structuring to suit the project proposals to maximise returns to the stakeholders.

He said one should develop skills to understand and identify the correct people and market potential as two key elements in project financing. Krishen Nanayakkara, Director Heladhanavi (Pvt) Ltd, the guest of honour said credit worthiness of the client and assets in the project are two key components in project finance. "In project finance, the most important factor is cash flows. The loose ends mainly occur at revenue, equipment, production and reliability of supplier of machines," he said.

"If you confine yourself to an air-conditioned room and expect the results to be rosy, it will never happen.

You have to physically involve yourself in the project and back up arrangements and contingency arrangements have to be ready at a given time," he said. Nanayakkara also said that a Credit Analyst has to trust the project and always be mindful of the cash flow establishment.

IBSL plans to offer similar programs to other financial institutions as well.