The Project comprises a proposed IFC equity investment in Sanasa Development Bank (the “Bank” or “SDB”). SDB is the apex credit institution for thrift and credit co-operative societies and has led the co-operative movement in the country for several decades. In 1997, SDB was registered as a licensed Specialized Bank by the Central Bank of Sri Lanka and it now functions as the key financial institution for the Sanasa movement. SDB comprises over 8,500 rural co-operative and via this vast network, it reaches nearly a million microfinance customers. SDB has over half a million account relationships, making it the largest Microfinance Institution in the country both in terms of outreach and portfolio. The Bank has been internationally recognized in the field of microfinance. Most recently, SDB was ranked 2nd best MFI in the world by Micro Finance Exchange Institution (MIX, an institution founded by CGAP for the purposes of microfinance industry benchmarking). IFC intends to take up to 10% of SDB’s total equity capital via the issue of new shares. IFC will provide SDB with funding to strengthen its capital, access to international best practices in the operational and governance areas, and help the Bank develop a more robust and scalable business model.