Sri Lanka: John Keells Modern Retail Infrastructure Expansion Project

Nonsovereign Project | 55143-001

The proceeds from this investment will be used towards the expansion of the group''s modern retail and distribution businesses, including the construction and equipping of new supermarkets and the setting up of new, state of the art distribution logistics centers.

Project Details

  • Project Officer
    Choudhary, Mayank
    Private Sector Operations Department
    Request for information
  • Approval Date
    13 December 2021
  • Country/Economy
    Sri Lanka
  • Sector
    • Agriculture, natural resources and rural development
Project Name John Keells Modern Retail Infrastructure Expansion Project
Project Number 55143-001
Borrower / Company John Keells Holdings PLC
Country / Economy Sri Lanka
Location Nation-wide
Type or Modality of Assistance
7704 Equity Ordinary capital resources LKR 3,022.05 million Approved
7705 Equity Ordinary capital resources LKR 5,036.75 million Approved
JL09 Equity Leading Asia's Private Infrastructure Fund (LEAP) USD 15.00 million Approved
JL10 Equity Leading Asia's Private Infrastructure Fund (LEAP) USD 25.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Equity Investments Unit
Responsible ADB Officer Choudhary, Mayank
Project Sponsor(s)
Description The proceeds from this investment will be used towards the expansion of the group''s modern retail and distribution businesses, including the construction and equipping of new supermarkets and the setting up of new, state of the art distribution logistics centers.
Objectives and Scope The investment will strengthen value chain linkages for farmers supplying to markets and enhance food security and safety for consumers. The investment will result in job creation, gender equality measures, boost tax collection.
Linkage to Country/Regional Strategy The project is consistent with ADB''s Strategy 2030 and four of its operational priorities: 1 addressing remaining poverty and reducing inequalities (by improving the incomes of farmers and creating jobs); 2 accelerating progress in gender equality (by promoting gender equality through a gender action plan); 3 enhancing environmental sustainability (by promoting the adoption of climate-smart technologies to ensure sustainable use of land and water resources); and 5 promoting rural development and food security (by improving market connectivity, enhancing food safety, and increasing food security). The project is also consistent with country partnership strategy, 2018 2022 with Sri Lanka because it strengthens agricultural infrastructure and commercialization and promotes private sector development.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Environmental impacts associated with ADB''s uses of proceeds is anticipated to be moderate, site specific and can be mitigated though proper environmental, health and safety control measures. The company will put in place environmental and social management system at relevant subsidiaries to screen out prohibited activities, assess E&S risks and impacts associated with projects, manage E&S aspects of its construction and operation activities, monitor and report its E&S performances to corporate and ADB.
Involuntary Resettlement Involuntary resettlement impacts have been deemed to be low for this project with the company''s approach to land acquisition or lease undertaken on a negotiated acquisition or access basis. However, given the low risk of displacement of informal land users and occupants and to ensure compliance with ADB''s policy requirements, the company and relevant business units involved in the project will be required to adopt measures within their existing Environmental and Social Management to screen, categorize and manage project activities that may have involuntary resettlement impacts in line with Safeguard Requirement 2, ADB SPS.
Indigenous Peoples The company and the relevant business units involved with the project will not undertake any activities that will directly or indirectly affect the dignity, human rights, traditional socio-cultural beliefs and practices and livelihood systems of distinct and vulnerable ethnic minority groups or indigenous peoples. To ensure project activities avoid impacts on indigenous peoples the project will undertake screening and categorization processes in line with Safeguard Requirement 3, ADB SPS.
Stakeholder Communication, Participation, and Consultation The company and the relevant business units of the project will ensure effective stakeholder engagement and consultation in the implementation of project activities, as required under its enhanced Environmental and Social Management System (ESMS) and to ensure compliance with ADB''s policy requirements. The ESMS also includes procedures for internal and external stakeholders to raise complaints with specified steps for response and resolution.
Timetable for assistance design, processing and implementation
Concept Clearance 13 Jul 2021
Credit Committee Meeting 22 Oct 2021
Approval 13 Dec 2021
Last PDS Update 24 Jan 2022

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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