One in every three loans provided to small and medium enterprises (SMEs) in Sri Lanka by lending institutions in 2022 was by the Commercial Bank of Ceylon, recently released official government figures reveal.
This emphatic reaffirmation of Commercial Bank’s status as the largest lender by far to the country’s SME sector comes in the 2022 Annual Report of the Ministry of Finance, which shows that the Commercial Bank accounted for 34.2% of the total loans provided to the SME sector by commercial and specialised banks.
Commercial Bank lent Rs 195.852 billion out of Rs 619.891 billion in loans provided to SMEs by the 18 institutions in 2022, while the number of loans granted by the Bank was 43,427 from the total of 126,899 loans granted in the reviewed year. Commercial Bank’s contribution was particularly evident in the industries category, with the Bank accounting for more than half of the total number of loans provided to the category by all banks.
Commenting on this important validation of the Bank’s contribution to the country, Commercial Bank’s Managing Director/ CEO Mr Sanath Manatunge said: “In our journey of fulfilling our vision and mission as well as our duty as a bank that is systemically important to the national economy, it is deeply satisfying to see that we are making a truly significant contribution to the SME sector, even in challenging times. This is made possible by our continued commitment to this all-important segment supported by dedicated processes and infrastructure to cater to specific needs of SMEs. Our financial experience built on decades of prudent management, and our adherence to core values and fundamentals definitely add value in catering to these customers.”
He said the Bank objectively assesses the financial requirement of SMEs and seeks lending opportunities in targeted segments such as exports, local manufacture and import substitution industries, to which financial assistance is extended through the concessionary credit lines secured by the Bank.
In order to revitalise businesses that are under-performing due to various reasons, the Bank setup a Business Revival and Rehabilitation Unit in 2020 to proactively support businesses that show early warning signals. During the year under review, the special unit assisted many SMEs while providing support services to regenerate their momentum.
SMEs have also faced difficulties in sustaining their operations due to other factors, including the shortage of foreign currency reserves, import restrictions, supply disruptions and resource mobilisation limitations in the reviewed year. The Bank said it has adopted a systematic approach to help manage various challenges, creating fair opportunities for all customers.
The Bank has made significant contributions to develop the businesses of SMEs by conducting capacity building programmes, creating value chains, creating networking opportunities, conducting trade fairs and encouraging SMEs to go digital. The Bank said it firmly believes that empowering SMEs not only strengthens the economy but also fosters employment opportunities, drives innovation and boosts overall prosperity.
Commercial Bank recently launched a comprehensive Business ecosystem branded ‘Commercial Bank LEAP GlobalLinker’ – a digital platform designed to help businesses, particularly small and medium-sized enterprises, to transition to the global market by digitizing and networking with other businesses across borders. Built in compliance with international standards and powered by GlobalLinker, the platform makes it possible to create online stores and to promote their products and services, expand their network of customers, investors, and suppliers domestically and internationally, in order to grow and to be competitive in the global landscape.
Sri Lanka’s first 100% carbon neutral bank, the first Sri Lankan bank to be listed among the Top 1000 Banks of the World and the only Sri Lankan bank to be so listed for 12 years consecutively, Commercial Bank operates a network of 271 branches, 957 automated machines, 14 Regional SME Managers and 19 Agriculture and Microfinance Officers in rural areas of Sri Lanka to assist SMEs. Commercial Bank is also a leader in digital innovation in the country’s Banking sector. The Bank’s overseas operations encompass Bangladesh, where the Bank operates 20 outlets; Myanmar, where it has a Microfinance company in Nay Pyi Taw; and the Maldives, where the Bank has a fully-fledged Tier I Bank with a majority stake