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SMB Finance CEO predicts lending rates will fall in 2023

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SMB Finance directors speaking to the media in Colombo recently. From Left: Anura Chandrasiri – Director, Thilan Wijesinghe – Director, Supul Wijesinghe – CEO, Ravi Wijerathne – Chairman, Shardha Sosa – Director and Lolitha Abesinghe - Director

by Sanath Nanayakkare

Making an interesting bet on the cost of borrowing money by entrepreneurs and businesses, Supul Wijesinghe, CEO of SMB Finance predicted a fall in interest rates in 2023 or in the foreseeable future.

“Interest rates should come down next year or in the foreseeable future as a result of the measures being taken by the Central Bank of Sri Lanka (CBSL) and other stakeholders,” he said addressing the media in Colombo recently.

He made this remark responding to a query from the media as to how his non-banking financial institution – which was recently elevated to SMB Finance from SMB Leasing – would deal with having to lend potential customers at an interest rate of over 30%.

In response he said, “When you have a 30% government borrowing rate – which is bench marked as a risk-free rate by the market, obviously lending rates would be higher than that. In such a context, entrepreneurs will surely contemplate whether they can borrow funds and operate a business with an interest rate of over 30%. This is an issue, and at present, lending is curtailed in both banking and non-banking financial institutions sector due to this reason. But I think this trend will see a favourable change in 2023 or in the foreseeable future.”

SMB Finance currently has 3 branches and they are planning to expand it to 10 branches for which approval has been sought from the CBSL.

“We should have nothing but optimism as we enter the Year 2023. We are looking to set up new branches in four provinces and how and when branches can be set up in the North and the East will be determined subsequently. It could possibly happen in 2024. We have to be mindful of our overhead costs when setting up branches because we have to deliver value to our shareholders,” he said.

When asked about SMB Finance’s growth plans for 2023, he said, “We are planning to launch several new products targeting the small and medium enterprise (SME) sector which has been adversely affected as a consequence of the country’s economic crisis. In Sri Lanka, we mainly pursue asset-based lending. SMB Finance will be looking at entrepreneurs and businesses that don’t have the required collateral, but are running a fairy good business in terms of their cash flow. For instance, I would like to tell you about one of the products we are currently offering the tea industry. There, we enter a tripartite agreement with the tea broker, tea estate/factory and SMB Finance. Through this arrangement, the payment assurances are given by the tea broker affiliated with the tea estate. This way we mitigate the default risk and also support the borrower in a sustainable way. Similarly, we will be looking at various industries producing ecological products and have a steady cash flow. We will be announcing our new product portfolio in the first quarter of 2023.”

SMB Finance PLC Chairman, Ravi Wijeratne, stated that the award of the business license to SMB reflects the Company’s strong balance sheet having a core capital well in excess of minimum requirements stipulated by the CBSL.

SMB Leasing (formerly) increased its Assert Base by over 300% from Rs. 1.5 billion to 5 billion and Shareholder Funds by 200% from Rs. 1.5 billion Rs. 3 billion over the past last three years.

For budgetary purposes, raising of domestic currency debt by the Government of Sri Lanka is mainly made through, Treasury bills and Treasury bonds. At the Treasury bill issuance held on 21 December 2022, Rs. 5,510 million was raised at the Weighted Average Yield Rates of 32.23% and 29.30%. Interest rate movements in the Treasury bill market provide a benchmark for the short-term credit market. Hence, changes in the volumes and rates in the Treasury bill market affect the cost, profitability and liquidity of financial institutions.

Central Bank’s Weekly Economic Indicators showed that Weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 23rd December 2022 increased by 37 bps to 28.68 per cent compared to the previous week.



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USA–Sri Lanka Chamber of Commerce plans New York campaign to promote Tourism and Business

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The initiative will provide Sri Lankan businesses with a vital platform to introduce their products and services to the American market

Timing aligns with national policy discussions

By Sanath Nanayakkare

The USA–Sri Lanka Chamber of Commerce is exploring an innovative promotional initiative to showcase Sri Lanka’s tourism, cultural heritage, and commercial opportunities in the heart of New York City during the upcoming Christmas and holiday season.

The proposed campaign aims to bring Sri Lanka’s unique identity to one of the world’s most internationally recognized cities through a mobile digital billboard featuring high-quality photographs and videos highlighting the island’s natural beauty, rich heritage, and diverse commercial offerings. Designed to capitalize on New York City’s significant holiday-season foot traffic, the initiative will reach American consumers, international tourists, and potential business partners.

The digital showcase will feature pristine beaches, scenic mountains, waterfalls, tea plantations, wildlife, ancient cities, Buddhist heritage, traditional arts, authentic cuisine, and modern attractions, positioning the country as a premier international travel destination. An interactive QR code linking to comprehensive tourism information will also be incorporated, allowing viewers to directly explore travel opportunities.

Beyond destination promotion, the initiative provides Sri Lankan businesses with a vital platform to introduce their products and services to the American market. Enterprises representing Ceylon tea, spices, food products, gems and jewellery, apparel, handicrafts, wellness, hospitality, and tourism will have the opportunity to showcase their brands alongside the broader national campaign.

The Chamber notes that this effort will be particularly beneficial for small and medium-sized enterprises (SMEs) seeking greater international exposure, brand recognition, and commercial partnerships in the United States. By integrating tourism promotion with commercial visibility, the project aims to strengthen Sri Lanka’s international image while supporting trade, investment, and business development.

Operating under the central message of “Discover Sri Lanka. Experience Sri Lanka. Visit Sri Lanka,” the campaign presents the island as a destination defined by natural beauty, cultural richness, distinctive products, and entrepreneurial potential. More information on the initiative is accessible at www.usaslcc.org.

Tourism sector stakeholders have welcomed the move, noting that private-sector-led initiatives of this nature bypass cumbersome bureaucratic procurement procedures and complex tender processes typically associated with state-run promotional campaigns abroad.

The timing aligns with recent national policy discussions regarding tourism promotion. Participating in a Fireside Chat at the inauguration of the Sri Lanka Economic and Investment Summit 2026, organized by the Ceylon Chamber of Commerce, President Anura Kumara Dissanayake emphasized that a proper procurement mechanism needs to be established before acquiring tourism promotional concepts, recommending a performance-based system where agencies are compensated according to verified growth in tourist arrivals.

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Seylan Bank partners Colombo Motor Show 2026 as official banking and leasing partner

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For 10th consecutive year

Seylan Bank PLC, the Bank with a Heart, has reaffirmed its commitment to supporting Sri Lanka’s automotive industry by partnering with the 20th edition of the Colombo Motor Show 2026 as the Official Banking & Leasing Partner for the 10th consecutive year. This makes Seylan Bank the longest-standing partner of the Colombo Motor Show, further reflecting its longstanding association with one of Sri Lanka’s most prominent automotive exhibitions. The four-day exhibition is scheduled to take place from 20th to 23rd November 2026 at the Bandaranaike Memorial International Conference Hall (BMICH), marking the first time the Colombo Motor Show will be held as a four-day event.

As one of Sri Lanka’s leading international motor and motor accessories exhibitions, the Colombo Motor Show will bring together vehicle enthusiasts, prospective buyers, industry professionals and automotive service providers. The 2026 edition is expected to feature over 200 trade stalls covering motor vehicles, accessories, spare parts, lubricants, tyres, batteries, leasing facilities and other motor-related services.

Through its continued partnership, Seylan Bank will showcase a comprehensive range of financial solutions designed to support customers in meeting their personal and business needs, with a particular focus on Seylan Leasing facilities. Visitors to the exhibition will have the opportunity to receive on-the-spot leasing evaluations and expert guidance from Seylan Leasing Specialists, helping them explore vehicle financing options conveniently during the event.

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WCIC sharpens focus on scaling women-owned businesses

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WCIC Office Bearers

The Women’s Chamber of Industry and Commerce (WCIC) is sharpening its focus on helping women entrepreneurs move beyond business creation towards sustainable growth, as it expands its membership, partnerships and advocacy footprint.

WCIC Chairperson Gayani de Alwis, concluding her second tenure, highlighted the Chamber’s efforts had increasingly centered on creating pathways for women to translate entrepreneurial ambition into viable enterprises and, importantly, build those businesses for the longer term.

“Ultimately, our impact is not measured by the number of programmes we conducted, but by the women whose businesses grew, whose voices became stronger, whose horizons expanded and whose contribution to the economy became greater,” she said addressing the WCIC 41st Annual General Meeting (AGM) held on 22 September for which the Chief Guest was Canadian High Commissioner to Sri Lanka and the Maldives Isabelle Martin.

The focus has included a special initiative for female university students with an entrepreneurial mindset, regional chapter initiatives in the Northern Province, capacity-building programmes and the inaugural ‘Beyond Ramp Up’ workshop.

The Chairperson said these initiatives were designed to move women “from aspiration to enterprise, and from enterprise to sustainable growth”, signaling a broader focus on strengthening the progression of women entrepreneurs beyond the initial stages of business formation.

WCIC recorded a 20 percent increase in membership during the period with membership crossing 460 and expanded its ecosystem through a series of strategic partnerships.

Internally, WCIC moved to strengthen its governance framework, revising its Articles of Association to ensure regulatory compliance and introducing a Code of Conduct and Board self-assessment. Clearer organisational roles, job descriptions and performance targets were also introduced as part of efforts to strengthen accountability and professionalise its operations.

Reflecting on her tenure, the Chairperson said the period had been about building a stronger, more connected and professionally governed organisation, while converting its wider ambitions into tangible opportunities for women in business.

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