ComBank reaffirmed as biggest lender to Sri Lanka’s SME sector in 2022

One in every three loans provided to the small and medium enterprises (SMEs) in Sri Lanka by lending institutions in 2022 was by Commercial Bank of Ceylon, the recently released official government figures reveal, making the entity the biggest lender to the sector.

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 Finance Ministry, which shows that Commercial Bank accounted for 34.2 percent 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 Managing Director/CEO Sanath Manatunge said it is deeply satisfying to see that the bank is making a 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 the 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, Manatunge added. In order to revitalise businesses that are underperforming due to various reasons, the bank set up 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.