Business

BOC to break negative cycle and grow its SME loan book by Rs. 5 billion-and counting

Published

3 years ago

2023/08/11

Thilina Walpola

Rs. 4 billion for SMEs Rs. 1 billion for startups

Interest rates as low as 12.0- 12.5% over 5 years 5% below market rates

By Sanath Nanayakkare

The Bank of Ceylon (BOC) yesterday called a press conference at a short notice to break good news for Sri Lanka’s SME sector, women-led businesses and startups hungry for capital to give impetus to their growth plans after Sri Lanka has gone through a tough cycle of crises.

The Bank has just rolled out an SME fund of Rs. 5 billion at 12.0 -12.5% interest rates which the Bank said would certainly increase if there is more demand from the businesses to take their businesses to the next level.

BOC Chairman, President’s Counsel Ronald C. Perera addressing the media at BOC head office said,” As you know the past few years have been a huge challenge for the whole country including the banking sector. The interest rates went up sky-high and now after the domestic debt optimization (DDO) interest rates have started coming down. We are hopeful it will kick off the business sector so that entrepreneurs will be able to borrow funds at reasonable rates to carry out their commercial activities.

We at the Bank of Ceylon have especially thought about the Small and Medium Enterprise sector (SMEs) not only in the western province but also in all other provinces because they are the backbone of the economy of the country. Before the DDO was announced, interest rates hovered around 25-28%, and by August 9, 2023 it had come down to 16.9%. Now we have worked out a special SME loan scheme totaling Rs. 5 billion to be disbursed at 12% which is 5% below the market rate. Each qualifying SME in this loan scheme can seek a loan up Rs. 25 million. If they have collateral, they will get their loan at 12% and those without collateral will get it at 12.5%. According to the demand, we will certainly increase the SME loan volume beyond Rs. 5 billion. Let’s first see how things would turn out in the initial phase.”

“Further, there is another loan scheme to support the startups with up to Rs. 2 million rupees at the same interest rates. Both these loans are given for 5-year periods. We are looking to give priority to young entrepreneurs and businesses headed by women. We have allocated 4 billion rupees for SME loans and 1 billion rupees for the startups. This means a total of Rs. 5 billion will be disbursed in this exercise. We hope it will help drive SMEs catering to the local market as well as export-oriented SMEs and startups that need financing to grow into the next phase. The fund allocation will be implemented in a first-come first-served basis. One customer can get only one loan under this category.

This financing is provided for new businesses and not for settlements or re-pricing of existing businesses. We will abide by the normal banking practices stipulated by the Central Bank such as getting CRIB reports of borrowers and guarantors. The applicants must demonstrate that they have necessary qualifications and experience in the relevant field and have a valid business registration. They need to be able to produce environmental compliance reports etc., in case it would be required.

The borrowers would be required to provide 25% equity of their respective projects. We will not permit the purchase of land or vehicles under this scheme, but the funds can be used to put up infrastructure with the approval and due diligence by the Bank. The applicants have to come up with a business plan to show how he or she will maintain the operational activities of the business and the cashflow in a stable manner.”

“These loan schemes have just rolled out this week. Actually this was initiated after the government and the Central Bank asking us to reduce interest rates and support the economic recovery as the time is right to do so. In fact, we have gone beyond the desired levels and are offering these loans 5% below the market rate.”

“There are already a number of other SME financing facilities given at concessionary interest rates which had started earlier. In addition to that, we provide non-financial assistance to SMEs under the BOC SME Circle. It gives them the know-how to operate their businesses successfully and to expand their businesses,” BOC Chairman said.

BOC General Manager/CEO Russel Fonseka said that the Bank was able to safeguard their customers during the multiple crises and when the interest rates shot up to very high levels, because they didn’t shift that burden on to their customers, but absorbed that loss into the Bank and provided a cushion for the troubled businesses.”

“That was how BOC able to keep its customers battling the economic crisis to survive and to keep our non-performing loans (NPLs) at a very low level. We have always stayed true to our core value of ‘thin margins, high volumes’ which has worked for the benefit of the Bank, its customer base and the overall economy,” the GM said.

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Business

India-Sri Lanka Foundation’s 41st meeting signals a new era of integration

Published

8 hours ago

2026/09/2

Sahan Weerasooriya

High Commissioners Santosh Jha and Mahishini Colonne chaired the 41st India-Sri Lanka Foundation meeting in New Delhi, highlighting ongoing bilateral cooperation across cultural, economic, and infrastructure sectors.

By Sanath Nanayakkare

On the surface, the 41st Board Meeting of the India-Sri Lanka Foundation (ISLF) in New Delhi on August 28, 2026, was structured as a routine diplomatic engagement. Co-chaired by Indian High Commissioner Santosh Jha and Sri Lankan High Commissioner Mahishini Colonne, the session formally approved a standard slate of cultural and educational projects.

However, looking closer at the broader macroeconomic and geopolitical landscape, the meeting underscored a much deeper structural alignment between the two nations. Against a backdrop of ongoing economic recovery, bilateral discussions increasingly touch upon critical areas of regional integration, investment, and infrastructure.

Among the key areas attracting attention are post-civil war reconciliation efforts and administrative milestones in the Northern Province.

Discussions in diplomatic circles continue to focus on the progressive release of state-held lands back to civilian inhabitants, alongside the anticipated finalization of provincial council elections to support local governance frameworks.

In the economic sphere, commercial integration remains a central theme as Sri Lanka stabilizes its foreign exchange reserves.

Recent financial dialogues in Colombo were seen exploring mechanisms such as transacting in Indian Rupees (INR), aligning with wider regional efforts to facilitate bilateral trade settlements and mitigate foreign currency pressures. Financial institutions, including the State Bank of India, continue to support these bilateral trade facilitation mechanisms.

Cooperation in the energy sector is also progressing through key joint ventures aimed at harnessing renewable resources. Proposals such as the 200MW solar power project in Sampur, developed via a partnership between NTPC and the Ceylon Electricity Board, highlight ongoing efforts to diversify national power generation. Discussions concerning cross-border grid interconnections further reflect strategies to enhance regional energy security and optimize renewable capacity.

At the same time, ongoing reviews of project tariffs – such as those involving renewable initiatives by firms like Adani Green Energy – demonstrate the government’s focus on balancing capital investments with domestic economic interests.

As the ISLF marks decades of supporting bilateral cultural exchanges through hundreds of initiatives, the overarching partnership between New Delhi and Colombo continues to evolve. Navigating these complex frameworks of trade, energy, and development remains essential as Sri Lanka charts its economic future within the South Asian region.

Business

Sysco LABS named one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces for 2026

Published

8 hours ago

2026/09/2

Sahan Weerasooriya

At the far left and far right, respectively: Ruchini Weerawardena, Senior Manager – Talent Management and Development, and Tashiya Jayatilaka, Team Lead – People Operations accepting the award on behalf of Sysco LABS.

Sysco LABS, the Global Innovation Center of Sysco, has been named one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces at the Women-Friendly Workplace Awards 2026, marking its highest recognition at the awards to date.

The recognition represents an important milestone in Sysco LABS’ ongoing journey to build a workplace where women are supported not only to enter and participate in the technology industry, but to develop, progress and build meaningful long-term careers.

Held recently, the 2026 awards organized by Satynmag continued a six-year journey of recognizing and encouraging organizations to move beyond intention towards meaningful and measurable progress for women at work. This year’s awards placed particular emphasis on a defining question for women-friendly workplaces: beyond representation, how far are women able to go?

This win also reflects a progression in the company’s recognition journey at the Women Friendly Workplaces Awards. Following an “Honorable Mention” in the 2023 edition of the ceremony while winning a special award for “Best Women in STEM Project” in 2025, 2026 marks the first time Sysco LABS has been recognized as one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces.

Business

CCPI-based headline inflation accelerates in August 2026

Published

8 hours ago

2026/09/2

Sahan Weerasooriya

The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) increased to 8.0% in August 2026 from 7.3% in July 2026, primarily due to the statistical base effect in food inflation. Meanwhile, food inflation (Y-o-Y) increased to 8.5% in August 2026 from 6.3% in July 2026, contributing mainly to the increase in headline inflation, while non-food inflation (Y-o-Y) decelerated to 7.7% in August 2026 from 7.8% in July 2026.

On a month-on-month basis, the CCPI increased by 0.28% in August 2026. This increase was mainly driven by the food category, which contributed 0.20 percentage point, largely owing to the increase in prices of Milk Powder, while the non-food category contributed a marginal 0.07 percentage point.

Meanwhile, core inflation (Y-o-Y) accelerated to 5.1% in August 2026 from 4.4% in July 2026.

According to the inflation projections made at the monetary policy round in July 2026, headline inflation is expected to remain above the target of 5% in the near term, before easing and stabilising around the target over the medium term, supported by appropriate policy measures. These projections are conditional, among other assumptions, on the expectation that the effects of the tensions in the Middle East and their spillovers will be temporary and gradually dissipate.