SFD-SL sign US $ 1mn agreement for plastic product imports under extended credit programme
Riyadh Daily: Saudi Fund for Development (SFD) has offered an extended credit facility valued at US $ 1 million to Sri Lankan importers who are interested in getting non-oil products from Saudi Arabia.
The first-ever agreement, under the long-term credit programme, was signed between Sri Lanka’s Selmo (Pvt.) Limited and the Saudi Export Programme (SEP), which functions under the umbrella of the SFD.
According to the accord, Selmo (Pvt.) Ltd from Sri Lanka has inked a financing agreement with the SEP to import raw materials for plastics such as polypropylene, polyethylene and granule products from Saudi Arabia to Sri Lanka on a long-term credit basis.
The agreement was signed between Selmo (Pvt.) Ltd Managing Director Anton Hemantha and SEP Director General Ahmed Al Ghannam in the presence of Sri Lankan Ambassador Azmi Thassim and representatives from both sides.
Ghannam stressed that this programme is soon to be converted as Saudi Arabia’s Exim Bank. Speaking to Riyadh Daily, following the signing of agreement, Hemantha said that his company has been exporting raw materials for plastic products from SABIC in Riyadh.
“This is going to be a new arrangement which would not only help Sri Lanka but also Saudi Arabia to export their non-oil products to various countries in the world.”
The SEP is the arm of the SFD to finance non-oil exports from Saudi Arabia to other countries on a long-term credit basis, specially raw material-related items, giving more competitive advantages to private companies to produce their products at lower cost and export to other countries.
Several other countries have already become partners of the SEP in availing themselves of the long-term concessions offered by the SFD.
Under this scheme, the SEP has opened its credit facility for a large number of non-oil products from Saudi Arabia and more importantly, importing of raw material-related products for Sri Lanka.
Selmo (Pvt.) Ltd was established in 1985 as a manufacturer of printed and unprinted polypropylene and polyethylene packaging for tea and garment industry sector. It is one of the leading manufacturers of laminated flexible packaging convertors in Sri Lanka.