Monday, July 19, 2021

Banks expected to make 20 % growth in MSMEs lending

During the year 2021, licensed banks are expected to achieve a growth rate of not less than 20 per cent of credit to MSMEs.

Speaking at a webinar on ‘Financial Inclusion For Overall Inclusive Development Case for Sri Lanka’, Central Bank Governor Prof. W D Lakshman said the Central Bank has taken targeted actions to ensure that MSMEs are in selected sectors of national importance and are also given priority in lending discussions of licensed banks. With the COVID -19 outbreak in early 2020, the CBSL played a prominent role in supporting MSMEs and individuals whose economic activities were adversely affected by the pandemic.

“The introduction of Saubagya COVID-19 renaissance facility was the initial milestone in supporting the MSMEs during the pandemic.”

Noting that the successes of development banking and venture capital observed in other countries need to be replicated in Sri Lanka, if it is to move to a higher and inclusive growth path with the support of financial sector, Prof. Lakshman said Central Bank is actively supporting the Government’s efforts to establish a Credit Guarantee Institution which would address the issue of lack of collateral faced by the MSMEs to a great extent.

The Governor further expressed hope that these measures would ensure that the financial sector maintains a healthy attitude towards the sector.

 

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