SDB bank recently entered into a joint initiative together with the Asian Development Bank (ADB), to provide a line of credit (LoC) to selected small and medium-sized enterprises (SMEs) in Sri Lanka, including those led by women, are first-time borrowers, lack of sufficient collateral and those who are located outside Colombo. The project also includes technical assistance (TA) for developing innovative financial schemes for SMEs and promoting export-oriented cluster development and developing an ecosystem for women entrepreneurship in Sri Lanka.
“Sri Lanka is at the edge of a precipice with an unforeseen economic crisis with a scarcity of power and energy and food security that is detrimental to the entire nation, including SMEs that are not financially and operationally stable,” says Champa J. Dasanayake, Head of SME of SDB bank. “The SME LoC from ADB is a lifeline for local SMEs, especially those driven by women, those that are not financially included and those located outside Colombo city areas and are thus exposed to economic vulnerabilities,” she adds.
All types of SMEs are permitted to apply for the loan facility, with priority given to Agriculture Agro-processing, Manufacturing, Fisheries, Tourism, Animal husbandry and Export Oriented businesses, excluding Trading, Leasing and Renting businesses. Out of these, a special loan allocation is made for first-time borrowers, women-led enterprises, business owners with non-collateralised working capital loans and SMEs located outside the Colombo District.