People’s Bank wins Most Responsive Bank against Covid-19 Award

The Asian Development Bank (ADB) has recognized People’s Bank by awarding it the “Most Responsive Bank against Covid-19” at the prestigious ADB Trade and Supply Finance Program Awards 2021 (TSCFP Awards 2021).

The TSCFP Awards recognizes leading partner banks of ADB and the fact that the aforementioned award was one of the key awards of this ceremony chosen from hundreds of entries submitted by of leading banks in Asia, highlights the significance of this accolade. The award was received subsequent to a rigorous independent evaluation which takes in to account multiple factors such as the positive impact the particular transaction had on the country, how it enabled the client to improve their business and the manner in which TSCFP contributed to the success of the transaction.

TSCFP provides guarantees and loans to banks to support international trade. Backed by ADB’s AAA credit rating, the program works with over 200 partner banks in Asia to provide companies with the financial support they need to engage in import and export activities. Since 2009, ADB’s TFP has supported more than 12,000 small and medium sized businesses across developing Asia in sectors ranging from commodities and capital goods to medical supplies and consumer goods.

People’s Bank, which has the largest physical and digital banking footprint across the country, kept trade routes to Sri Lanka open by supporting its customers to transact with counterparties across the globe despite many a challenge posed by Covid 19 crisis. The pivotal service it renders to the nation was highlighted yet again through this recognition as this particular award was for a transaction for the importation of critical medicines and medical equipment during the height of the pandemic.

People’s Bank, using its trade finance facilities, had made it possible for their customers to trade with companies that would otherwise be reluctant to trade with them due to risk perceptions. The bank enhanced its ability to provide trade finance facilities to customers by joining the Asian Development Bank’s Trade Finance Program in 2011. Some foreign companies or their banks may have risk limits to Sri Lanka or region, which may discourage them from conducting trade activities on credit. As a result, the counterparty bank may want a letter of credit opened by a customer in Sri Lanka to be confirmed by another party, which would result in an additional cost. Since People’s Bank is participating in the TFP, bank is able to use an ADB guarantee and give comfort to the foreign parties to transact business with Sri Lankan entities.

Foreign companies value the ADB guarantee due to the high standards maintained by the Asian Development Bank in evaluating and accepting a bank into its program which involves comprehensive due diligence. The TFP has also helped Sri Lanka during the recent credit downgrade, allowing business to continue.

Commenting on this achievement People’s Bank Chairman Sujeewa Rajapakse said “This achievement is yet another testament to People’s Bank’s unwavering commitment to look beyond mere profit motives and assist the country whenever called to do so. It gives us a great sense of fulfillment to see that our efforts have brought about the desired results in terms of curbing the pandemic situation and bringing back the country to normalcy”

Acknowledging the bank’s most recent international accolade, People’s Bank CEO/GM, Ranjith Kodituwakku stated “We are cognizant of the national role a bank of our stature has to play when the country is facing a critical situation. This is why our entire team worked tirelessly and relentlessly to offer all banking services uninterrupted despite unprecedented challenges we were facing. It is indeed an encouragement to see that efforts of our team has not gone unnoticed”