Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* IFC helps Sri Lankan small businesses grow through easier access to loans
Wed, Feb 6, 2013, 12:36 am SL Time, ColomboPage News Desk, Sri Lanka.

Feb 05, Colombo: International Finance Corporation (IFC), a member of the World Bank Group, is working with Sri Lanka's Credit Information Bureau to make it easier for up to 37,000 micro and small businesses to access loans and other forms of financing using movable assets as collateral.

IFC will provide advice and assistance to CRIB to support the legal framework which will enhance financing for firms against movable assets such as inventory and equipment. Expanding the collateral registry to include non-fixed assets, all of which are more readily available to small businesses, makes it easier for them to obtain financing even without traditional mortgages like land or property.

"IFC's assistance in this project will pave the way for a well-developed Secured Transactions Act, and provide transparent rules for creditors," said Ananda Silva, Chairman, CRIB. "It will also facilitate the use of movable assets as collateral, benefitting businesses and supporting economic growth."

Sri Lanka's small and medium enterprise sector constitutes between 80 to 90 percent of businesses and generates 75 percent of the employment. However, the World Bank's 2011 Investment Climate Assessment estimates that only around 35 percent of Sri Lankan small firms can access a loan or a line of credit, and around 14 percent of those who applied were denied financing.

"This initiative will make it easier for small businesses and entrepreneurs with few fixed assets to obtain the financing they need to grow," said IFC Executive Vice President and CEO Jin-Yong Cai. "And it will allow financial institutions to reduce risks and diversify their lending portfolios."

Sri Lanka is a priority country for IFC. IFC's committed portfolio of $274 million in Sri Lanka covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and health care. IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance, and by offering capacity-building and training opportunities.



ColomboPage - Recent 10 Stories
Jetwing Air represents Air China in Sri Lanka
-- [4 hours ago]
Sri Lankan President to inspect the Moragahakanda irrigation project today
-- [5 hours ago]
No need for new commissions on national issue, Sri Lanka Tamil party says
-- [6 hours ago]
Sri Lanka Marxist party to lodge complaint against former First Son's appointment to Navy
-- [6 hours ago]
Sri Lankan Minister says executive powers of the presidency will be slashed in February
-- [7 hours ago]
Provincial Chief Ministers want to rejoin parliament at Sri Lanka general election
Rathupaswala residents protest demanding reinvestigation of Sri Lanka Army shooting
Sri Lanka President's adviser leaves for Geneva to meet UN Human Rights Commissioner
Expansion of Sri Lanka's international airport with Japanese funds to continue
Sri Lankan government launches two housing projects to provide houses for 50,000 families

Copyright © 2000, 2012 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.