New Credit Guarantee Body Launched to Boost SME Lending

Sri Lanka has launched the National Credit Guarantee Institution Ltd (NCGIL) to enhance access to finance for Small and Medium Enterprises (SMEs) by offering credit guarantees for cashflow-based lending without the need for collateral.

Established under the Asian Development Bank’s (ADB) SME Financing Project with a $50 million loan, NCGIL provides a 67% loan guarantee to reduce lender risk.

Deputy Finance Minister Harshana Suriyapperuma said the initiative enables banks to focus on business viability rather than collateral.

Central Bank Governor Nandalal Weerasinghe noted this will help address credit disparities and promote financial inclusion, alongside broader reforms such as credit information systems and bankruptcy laws.

The ADB also supported the institution’s governance framework, sustainability model, and financial literacy initiatives. The project emphasizes inclusive financing, especially for women-led businesses, and aims to strengthen the entire financial ecosystem to support SME growth in Sri Lanka.

Spread the love
Tags:

Leave A Comment

Social