Apr 21, Colombo: Having recognized the need to promote economic sectors with high potential in terms of domestic economic growth and export earnings, leading to the broad-based revival of the economy, the Central Bank of Sri Lanka (CBSL) has introduced priority sector lending targets on credit granted by licensed commercial banks and licensed specialized banks to individuals and businesses in the Micro, Small and Medium Enterprises (MSME) sector.
Accordingly, Licensed banks shall grant credit to individuals and businesses in Lending Target MSME sector and ensure a growth rate of not less than 20 percent per annum on Y-o-Y basis, over the outstanding stock of lending to MSMEs at the end of the previous year, Monetary Law Act Order No. 1 of 2021 issued Wednesday said.
The lending target shall be prioritized in the following economic sub-sectors that display higher potential in terms of domestic growth and export earnings within the broader MSME sector, but shall not be restricted to the said sectors:
(1) Food and beverage processing
(ii) Production of medical utilities and related products
(iii) Development of distance learning facilities
(iv) Domestic cottage industry
(v) Rubber and rubber products
(vi) Ship and boat building
(viii) Batik and handloom
(ix) Gem and Jewellery
(x) Health and wellness
(xi) | Electronics and electrical components
(xii) Motor vehicle assembly
(xiii) Pharmaceutical manufacturing
(xiv) Porcelain, ceramics, and pottery