Background

Many countries in the region have broadened their approach toward economic development – promoting inclusive growth strategies that can sustainably benefit the poor and vulnerable. While the private sector has been a key contributor to the economic boom in Asia, it has yet to fully realize its potential in creating shared value and impact for income groups below the $3-$4 vulnerability line (the base of the income pyramid or BoP).

Inclusive Businesses are for-profit enterprises that directly engage – in innovative ways – BoP populations in their value chain as consumers, suppliers, distributors or employees. In Sri Lanka, about 59% of the population can be categorized as the base of the pyramid (on living on less than $4 a day) and these people would have a purchasing power of about $45 billion. While access to social services are relatively high, the country is facing a large need for skilled jobs among the educated youth, a high percentage of people in the pension age (18% by 2025) and new opportunities to target poverty reduction and inclusiveness in the geographical areas of war-torn North-East.

ADB’s Inclusive Business website comprises – among others – a study on the opportunities of Inclusive Business in Sri Lanka. The Inclusive Business Forum will discuss the results of that study, and the proposed design of an Inclusive Business Investment Fund.

Objectives and content

The objective of the Sri Lanka Inclusive Business Forum (held on Tuesday 28 August 2012 in Colombo) is to discuss the findings of the inclusive business country assessment study for Sri Lanka, and the recommendations for the ADB to support inclusive business scale-up through possibly establishing an investment fund for India and Sri Lanka.

The Sri Lanka inclusive business study (draft of 31July 2012) recommends that ADB is setting up a sub-regional investment fund (covering India and Sri Lanka) of about USD 100 million focusing on the education, health, water/housing and tourism sectors with some investment targets for remote areas and for Sri Lanka. The fund would promote Inclusive Business investments through equity and debt investments as well as credit guarantees in the range of $1-10 million, and would have a reasonable net financial return of 10-12%. Fund investments would be supported by a technical assistance facility worth 5-10% of the invested capital.

Organizers and participants

The forum will see 30-40 participating experts from a variety of stakeholders including inclusive businesses (40% of participants), fund managers (10%), government bodies (10%), industry associations (10%), development partners (20%) and the ADB. Private sector chief executive officers will present inclusive business models, fund managers and possible investors will discuss their interest in investing in such ventures, and government representatives and development partners will see how they can support inclusive business.

The Sri Lanka Forum is organized by the Asian Development Bank, in cooperation with Dalberg Consult. ADB’s Inclusive Business initiative is also in partnership with the inclusive business work done by the Netherlands’ development organization SNV, the World Business Council on Sustainable Development, and other development partners including DFID, the Ford Foundation, KfW, SIDA, and the Inter-American Development Bank (IADB).

Contacts

For inquiries:
Armin BAUER
Principal Economist, ADB
Tel: + 632 632 5550

For registration, send your reply form to:
Ashish MEHRA
Dalberg Consult
or confirm via phone
Tel: +91 998 7028151