USAID’s Private Sector Development project signs MoU with HNB to expand financing to MSMEs

From left: Catalyze PSD Sri Lank Activity Lead Interim Juan Forero, HNB Deputy General Manager Retail and SME Banking Sanjay Wijemanne, HNB Managing Director/CEO Jonathan Alles, USAID Sri Lanka and the Maldives Mission Director Reed Aeschliman, USAID Sri Lanka and the Maldives Project Management Specialist Reneera Paul and Catalyze PSD Sri Lanka Director Financing Jude Fernando at MoU signing ceremony

The U.S. Agency for International Development’s (USAID) Private Sector Development project signed a memorandum of understanding (MoU) with Hatton National Bank PLC (HNB) to expand financing to micro, small and medium enterprises (MSMEs) in Sri Lanka. 

“Partnerships like this can dramatically enhance economic and social impact more than any of us could achieve on our own,” said USAID Mission Director for Sri Lanka and Maldives Reed Aeschliman. 

“Through this partnership with HNB, we are fostering the next generation of successful businesses in Sri Lanka and ideally, helping families and communities thrive.” 

“Through this initiative, USAID’s Private Sector Development project will work with HNB staff to improve their skills in serving MSME clients by better understanding their unique needs and constraints. It will help HNB to develop products and processes that make it easier for MSMEs to get access to finance.” 

“Over a span of more than 30 years, HNB has played a pivotal role in Sri Lanka’s vital MSME sector. In that time, we have worked in close partnership with entrepreneurs at the grassroots of our economy and gained a deep understanding of the challenges they face. Crucially, HNB also has a wealth of first-hand experience working with a large number of MSMEs, to understand what these enterprises need in order to accelerate their growth to strengthen the export economy of the country,” said HNB Managing Director/CEO Jonathan Alles. 

“Educating entrepreneurs and ensuring they have the knowledge to make informed choices strengthens their resilience and growth potential. Through our continuing partnership with USAID to support several programmes for the benefit of this sector, we have seen the fruits of this labour manifest through better access to finance for our MSME customers. Therefore, we are delighted to be the first to join USAID on this empowering initiative and we invite MSMEs to make use of this golden opportunity to strengthen and grow their businesses,” Alles concluded. 

USAID’s Private Sector Development project will help MSMEs find and finance new business opportunities to strengthen their resilience to market changes and global economic shocks. By connecting businesses with advisory services, associations and financial institutions, the project will help them to use technology, accelerate innovation and access new domestic and international markets. 

This project is one component of the longstanding partnership between the U.S. and Sri Lanka to support self-reliance, strengthen stability and promote economic growth. USAID’s programme in Sri Lanka, totalling more than US $ 2 billion since 1961, promotes a healthy, educated and employed population. To learn more, visit usaid.gov/sri-lanka.