Sri Lanka banks blocking SMEs from Rs95bn credit line: Deputy Minister

Sri Lanka’s Ministry of Industries has asked entrepreneurs to reach out to regional development officers and bypass “uncooperative” bank branches, to access a 95 billion rupee subsidized credit facility.

Some bank branches discourage applicants to protect their own profit margins, Deputy Minister of Industries and Entrepreneurship Development, Chaturanga Abeysinghe, said on social media.

“Some bank branches prioritize increasing their own branch profits,” Abeysinghe said.

“Some branches try to push customers toward their own high-interest internal schemes instead of the government-subsidized options.”

According to him, common excuses used by bank officials include claims that quotas have been exhausted or that the approval process takes months.

However, Abeysinghe said that once a bank recommends an application, the Finance Ministry responds within two weeks.

“While some officials may be difficult, you can get the job done if you stay informed. If you face rejections, immediately meet the Industrial and Entrepreneurship Officers in your area,” Abeysinghe said.

Major private banks including Commercial Bank, Hatton National Bank (HNB), and NDB Bank have already exhausted their initial quotas due to high demand, he said, and the Finance Ministry is expected to allocate additional funds to these institutions in the next quarter.

Source: Economy Next