Invitation to Investors

NIDI invites ethical investors to provide loan capital to micro and small businesses in the Northern Province. NIDI currently has over 30 different micro and small ventures, ranging from a duckling hatchery to de-hydration of vegetables, small scale fisheries, moring farms, dairy, education etc. All ventures have been fully analyzed by NIDI where local entrepreneurs have been fully vetted and approved. In most cases, the local entrepreneur will have 50% of the equity and investors are invited to provide  the balance 50% (or less) equity by way of a loan. Local banks are willing to provide loans for ventures approved by NIDI at favorable terms. There are also low-cost finance schemes available through banks under specific government programs.

The Process of Equity Finance

Start up costs of most micro and small ventures are around US$10,000 (LKR 1.5m). Once an investor shows an interest in a specific project, NIDI will undertake the required steps to draw up a binding contract with the entrepreneur to bring in the investor as a short-term financier for the venture based on a 2-year loan at an annual interest rate of 10%, where both capital and interest are payable at the end of the loan term. NIDI will manage loan contract enforcement with each borrower client. The investor will have the freedom to take back his capital and interest or request NIDI to roll out the same amount to a different venture.

Rewards and Risks

Reward is mainly that of the investor contributing to the start-up and growth of a young venture in the Northern Province, without losing the capital and interest. Spin-off from such investments is that it brings the investor close to the entrepreneur and his immediate social circle, and gives the investor a sense of belonging to the overall economic development of the Northern province. Risks are that the venture, like any other business, can run into difficulties and may not perform up to expected standards, although, NIDI-assisted projects will have a depth of business analysis which will sharply reduce risks.

Expression of Interest

Investors with genuine interest in providing equity finance to young entrepreneurs in the Northern Province may write directly to NIDI at for details of ventures which require funds. NIDI will forward a brief synopsis of the venture and terms of investment. NIDI will respond within 48 hours to all queries.


Bank Details    
Account Type:   Savings Account
Currency:   LKR
Account Number:   200310053806


Remittance Details    
Account Number:    200310053806
Currency:   LKR
Swift Code:   PABSLKLX