ADB to provide US$ 100mn to fund Lankan SMEs

The government said yesterday that the Asian Development Bank (ADB) has agreed to provide US$ 100 million in funding to launch a project to support Sri Lanka’s small and medium-sized enterprises (SMEs).

Recognizing that small and medium-sized entrepreneurs continue to face financing difficulties, the government is planning to implement a new project called the “Small and Medium Enterprise Development Finance Project"

The Department of Government Information said the ADB has committed to providing US$100 million in funding for this project. 

Traditional banking practices often prioritise collateral-based lending over cash flow-based lending, which can pose challenges for small and medium entrepreneurs.

To address these issues, the government has initiated the establishment of the National Credit Protection Institute.