The Commercial Bank of Ceylon was the biggest lender to Sri Lanka’s small and medium enterprises (SME) sector by a huge margin in 2023, accounting for nearly a third of the value of the loans disbursed by a total of 17 state and private sector lending institutions, the Ministry of Finance has confirmed.
According to the Ministry’s Final Budget Position Report (Annual Report) for 2023, Commercial Bank lent Rs 231.655 billion out of the total loans of Rs 704.142 billion to SMEs, accounting for 33% of the total in value terms.
This is the fourth consecutive year that the Commercial Bank has been the biggest lender to the country’s small and medium enterprises, which, according to the Ministry of Finance, contribute 52% of the country’s Gross Domestic Production (GDP), 45% of employment, and 20% of exports.
Commercial Bank Managing Director/CEO Sanath Manatunge said: “Small and Medium Enterprises are the backbone of our economy, requiring substantial support in the current volatile economic conditions.
Our efforts have positioned us as the largest lender to SMEs for the fourth consecutive year. Our lending to SMEs has grown from Rs 163.9 billion in 2020 to Rs 231.6 billion in 2023, establishing the Bank’s steadfast commitment to the sector.”
Commercial Bank objectively assesses the financial requirements of SMEs and seeks lending opportunities in targeted segments such as exports, local manufacturing, women-led businesses and import substitution industries, to which financial assistance is extended through the concessionary credit lines secured by the Bank. To revitalise businesses that are underperforming due to various reasons, the Bank set up a Business Revival and Rehabilitation Unit in 2020 to proactively support businesses that show early warning signals.
The Bank has also made significant contributions to developing the businesses of SMEs by conducting capacity-building programmes titled ‘Viyapara Diriya,’ by creating value chains and networking opportunities.
