Business

ADB loans serve as big push for SMEs in the hinterland of Sri Lanka

Published

3 years ago

2023/05/19

Thilina Walpola

Timely funds rekindle the spirit of entrepreneurship

by Sanath Nanayakkare

As a multilateral bank the Asian Development Bank (ADB) has supported the SME sector in the country for a long time with many lending products and capacity building assistance. The Island Financial Review recently had the opportunity to meet with beneficiaries of five SME projects recently supported by the ADB in areas of the southern province far away from the cities. It was clear that ADB’s timely funds were quintessentially empowering the spirit of entrepreneurship in the hinterland.

These five beneficiary SMEs were from Karandeniya, Ambalangoda, Habaraduwa, Elpitiya and Thalgampala. They are actively and full-time engaged in different businesses, namely; cinnamon quilling and processing, coir product manufacturing and exporting, Ayurveda product manufacturing and exporting, spice production/sales and Orthodox black tea manufacturing. There were two successful women entrepreneurs among them who had built profitable businesses while creating a significant number of jobs for the youth in their areas. The following is a brief account of each of the SMEs served by ADB funds.

Pradeep Premaratne in Karandeniya operates a small yet successful cinnamon quilling and processing facility at his house with the support of his wife. The Regional Development Bank (RDB) one of the 13 participating banks to whom ADB funds are routed through the Ministry of Finance, had given a LKR 1.5 million loan to Pradeep as a working capital facility. It was a collateral free loan at an interest of 11.5%. Pradeep and his wife who earlier made cinnamon sticks from 100 kilos of raw cinnamon trees today employ 5 – 7 workers and process 300-500 kilos of raw tree per day and supplies about 850 kilos of finished sticks to the market for export on a monthly basis. He said that his monthly earnings had increased by about four fold as a result of the ADB working capital loan.

M.C De Zoysa, Managing Director- M.C Enterprises in Idantota, Ambalangoda received an ADB loan of LKR 10 million through Seylan Bank for his coir product manufacturing and exporting business. He received the loan during the covid pandemic period and he described the loan as a great ‘prop up’ at the time. “During the pandemic, people in many countries started growing their own food and the demand for coco peat for garden plants saw a phenomenal increase. ADB working capital loan I received enabled me to expand my production and meet the increased demand. The profits I made were re-invested for purchasing new machinery. If not for the ADB loan, I wouldn’t have been able to take advantage from that situation.”

He exports 30- 50 containers of coconut and coir-based products per month to South Korea, the Middle East, U.S.A. and China. The factory provides 75 direct jobs and more than 3000 indirect jobs. Zoysa is planning to expand his factory space and install a transformer while exploring solar power solutions for his operations.

Woman entrepreneur Supuli Karunaratne, managing director at Nature Healing Ayur (Pvt) Ltd in Habaraduwa received a loan of LKR 4 million and a grant of LKR 1 million under ADB’s Women Entrepreneurs Finance Initiative to expand her business in herbal food supplements manufacturing and exporting. Today she owns a new capsule filling machine with the capacity to fill 3,000 capsules in one hour which has significantly reduced her manual workforce. She exports health supplement products to countries such as Switzerland, Lithuania, Japan, and the Maldives.

Woman entrepreneur Chandanie Samanthi, director at Thalgampala Thunapaha (Pvt) Ltd received an ADB loan of LKR 3 million as a working loan facility through Nations Trust Bank. “My company with the support of my husband and staff achieved 30% growth this year compared to Year 2021 and I expect significant growth in the next 12 months. I am planning to expand our outlets network to Colombo and Jaffna in the coming years. Now we produce about 3,000 kilos of spice per day and sell just about the same volume while having a surplus stock at any given time. We are striving to attract higher customer appeal for the brand each year and we will position Thalgampala Thunapaha as the best Sri Lankan spice brand by 2029.”

Anura de Siva, chairman/managing director at Marakanda Tea Factory in Elpitiya of Evergreen Group received an ADB loan of LKR 10 million through DFCC Bank in Galle as a working capital facility.

Evergreen Group Accountant Danuka Dassanayake said,” The total loan amount we obtained from DFCC was LKR 35 million. Out of that we obtained refinance of Rs. 10 million from ADB at an interest rate of 4.75%. The total funds were used for building our CTC factory and purchase CTC machinery. The ADB loan share reduced our interest cost significantly making a positive impact on our finances and making our journey easier.”

Senal de Silva, director of the Group said that there are 13 factories in the Group and they contribute 4% of the total national tea export volume. “We acquired Marakanda at a time it had been closed down. We have been able to turn it around to a better position but it is still the weakest in the Group. However, it remains resilient thanks to the strength of the Group. Marakanda faces the issue of procurement of good tea leaf from the area. Other than that everything is stable. Tea smallholders do not care about the fact that harvesting methodology has a huge impact on the quality of the tea and its grading as per export-market benchmarks. I think that the government has a role to play in creating awareness among them and to educate them on the right balance between quality and quantity when providing their yield to factories for processing. There is fierce competition among the tea factories to procure tea leaf, therefore, tea smallholders are tempted to cut corners because they can supply anything to the factories. This should be corrected through the intervention of the authorities,” he said.

Marakanda tea factory employs 70 workers on a daily basis while the Group employs a total of 1,500 workforce.

SME Line of Credit Project of the ADB has three tranches which provide USD 340 million of assistance to the SME sector commencing from 2016. The first disbursement of USD 100 million and the second disbursement of USD 75 million through additional financing have already been utilized. The third disbursement through another additional financing of USD 165 million is currently being utilized by the participating banks to provide further access to finance SMEs.

All News Advertisement

Business

David Pieris Automobiles opens Sri Lanka’s first GWM Flagship Experience Centre

Published

21 hours ago

2026/06/9

Sahan Weerasooriya

Rohana Dissanayake, Group Chairman and Managing Director, David Pieris Group of Companies along with Mahesh Gunathilake, Director, David Pieris Automobiles (Private) cutting the ribbon to open GWM Flagship Experience Centre at the Access Tower, Union Place, Colombo

David Pieris Automobiles (Private) Limited (DPA), the four-wheeler sales arm of the David Pieris Group, announced the opening of its state-of-the-art GWM Flagship Experience Centre at 250, Access Tower 03, Union Place, Colombo 02, marking a significant milestone in the evolution of Sri Lanka’s automotive retail landscape.

The newly opened flagship facility is designed to deliver a truly world-class automotive experience, showcasing the latest innovations and technologies from GWM, one of the world’s leading automobile manufacturers. As the first and only vehicle experience centre of its kind in Sri Lanka, it offers customers an immersive journey that goes beyond the traditional showroom concept. Visitors can explore GWM’s premium range of SUVs and electric vehicles, including the HAVAL H6 HEV, HAVAL H6 PHEV, HAVAL H6 GT PHEV, TANK 300 HEV and TANK 500 HEV, while enjoying dedicated vehicle demonstration zones, test-drive opportunities, and a host of innovative customer engagement experiences designed to redefine the vehicle purchasing journey. GWM’s product portfolio in Sri Lanka will be further expanded in the coming months with the introduction of several new models, including a range of fully electric vehicles.

With a legacy spanning over four decades, the David Pieris Group has earned a reputation as one of Sri Lanka’s most trusted automotive organisations, particularly for its comprehensive after-sales support and customer service excellence. Strengthening its commitment to GWM customers, DPA has already established a dedicated, state-of-the-art GWM service centre at No. 75, Hyde Park Corner, Colombo 02, supported by an expanding network of authorised service dealers across the island to ensure convenient and reliable customer care.

Commenting on the opening, Mahesh Gunathilake, Director, David Pieris Automobiles, stated: “The opening of the GWM Flagship Experience Centre represents a significant milestone in our journey with the GWM brand in Sri Lanka. This is the country’s first dedicated state-of-the-art experience centre for GWM vehicles, offering customers the opportunity to experience world-class automotive technology, premium comfort and advanced safety features. GWM has successfully redefined modern mobility by delivering high-end luxury and innovation at an affordable price point, and we are proud to bring this exceptional experience to Sri Lankan motorists.”

The opening of the flagship facility further reinforces David Pieris Automobiles’ commitment to expanding GWM’s presence in Sri Lanka while providing customers with an unmatched ownership experience backed by the Group’s renowned sales and after-sales expertise.(DPA)

Business

Sri Lanka’s culinary strengths engagingly explored

Published

21 hours ago

2026/06/9

Sahan Weerasooriya

Issue no.1 of a ground-breaking journal on Sri Lankan food and culture has just been launched and it’s such an engaging ‘read’ that it just cannot be put down by the reader until s/he reaches the last word in the publication. Titled ‘ROOTED’ it is a publication of Rooted Publications Pvt. Ltd. Colombo (www.rootedsrilanka.com).

This is no run-of-the-mill journal on local ‘culinary delights’. It is a profoundly empathetic, sensitive exploration of the uniqueness of Sri Lankan food and the cultures of the country. In other words, it’s a close, appreciative examination of what makes the native food of Sri Lanka and its cultures special and hard to replicate and replace.

Writers of the arrestingly illustrated articles in ‘ROOTED’ have apparently spared no pains to travel the length and breadth of Sri Lanka to unravel, with mesmeric pleasure, the food and drink offers at the heart of Sri Lankan cuisine. The food connoisseur has all his curiosities satisfied in the journal and cannot prevent his taste buds from being stimulated on reading the contents of the journal.

Regardless of geographical or physical location what Sri Lanka has to offer its own people or the visitor to the country by way of particularly indigenous dishes and meal spreads are made to come alive in these pages. The connoisseurs and food experts are taken on an entrancing journey into homes transformed into family restaurants, aromatic eateries and bustling market places with sizzling catch along the sea coast of the island to its interior in this appetizing survey of Sri Lankan food.

What is distinct in terms of food and drink to the different ethnicities and cultures of the land are rendered in larger-than-life eye-catching portrayals via the pen and the lens. Consequently the journal not only celebrates food but also its distinctive cultural roots and identities. That is, people are serenaded alongside food.

In the process, the ‘ambul thials’, the ‘ala thel and brinjal badums’, the ‘thilapia curries’, the multifarious, ‘mouth-burning sambols’ and heady ‘Arrack shots’ experimentally mixed, to name just a few such offers of food and drink with a uniquely Sri Lankan stamp on them, are made to come alive in ‘ROOTED’.

The magazine has been put together by an editorial team headed by editors Chadini Fernando, Vidya Balachander and they need to be commended on a job well done.

By Lynn Ockersz

Business

MO Marketplace App: A space for women to sell in Sri Lanka

Published

21 hours ago

2026/06/9

Sahan Weerasooriya

The team behind the current success of 14,000 registered users

In Sri Lanka, selling something has always carried an unspoken risk for women. Share your number with a stranger. Arrange a meeting. Handle cash. Hope for the best.

MO Marketplace, live since June 2024, has removed every one of those friction points. Buyers and sellers on the platform never need to exchange personal contact details. Payments are held in escrow until delivery is confirmed. Pickup and drop-off is managed entirely by MO. Two people can complete a transaction from start to finish without ever speaking directly to each other.

For women running home-based businesses or women simply have too many clothes and things, that architecture is not a convenience. It is a fundamental shift in what is possible.

The evidence is in the listings. Clothing, fashion, and home goods dominate the platform, categories overwhelmingly driven by female sellers and buyers. From home-based clothing traders to small lifestyle businesses operating out of living rooms across Colombo, women are using MO to participate in commerce on their own terms, without compromising safety or privacy.

The platform has recorded 45,000 downloads and 14,000 registered users in 18 months, with peak monthly active users of 15,000. Commissions are capped at a flat 10%, significantly below the 15% to 30% charged by dominant platforms, making it accessible for small and micro sellers.

Coming mid-2026, AI tools will automatically generate listing descriptions and enhance product images, removing two of the most common barriers to getting started as a seller. Video selling is also on its way.

Sri Lanka has no shortage of entrepreneurial women. Until now it lacked a platform designed around how they actually need to trade.