Business

SMB Finance CEO predicts lending rates will fall in 2023

Published

3 years ago

2022/12/29

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.

All News Advertisement

Related Topics:SMB Finance SMB Finance directors

Up Next

Softlogic Life’s FY22 results grows to LKR 23 Bn GWP amidst tough macroeconomic challenges

Don't Miss

ZTE Blade Series now available in Sri Lanka

Click to comment

Business

University of West London opens Sri Lanka’s first full UK university branch campus

Published

55 seconds ago

2026/06/22

Thilina Walpola

The official signing ceremony between the University of West London, UK and ANC Education.

The University of West London (UWL) has formally opened the University of West London Sri Lanka Branch Campus, the country’s first full UK university branch campus, marking a landmark development in Sri Lanka’s higher education sector.

The University of West London Sri Lanka Branch Campus is designed to bring a UK university learning experience closer to students in Sri Lanka. The campus is operated by ANC Campus, a pioneer in the higher education sector in Sri Lanka with over two decades of experience in delivering internationally recognised education.

The University of West London Sri Lanka Branch Campus gives students the opportunity to study towards world-class UK degrees while remaining close to home. Academic delivery, assessment and quality assurance will be aligned with University of West London standards, with the University maintaining academic oversight of its courses and awards. Students will have access to UWL-approved programmes, academic support, learning resources and a campus environment designed to promote academic success, confidence and employability.

Business

Xiaomi Store powered by Abans opens at One Galle Face Mall

Published

5 mins ago

2026/06/22

Thilina Walpola

Xiaomi Sri Lanka, marked a significant day in the brand’s local journey with the launch of the all-new Xiaomi 17T and the grand opening of the new Xiaomi Store powered by Abans at One Galle Face Mall, Lower Ground.

This occasion reflects the brand’s growing presence in the country and its commitment to bringing smarter technology, connected devices and immersive customer experiences closer to Sri Lankan consumers.

Held under the theme “Step into a smarter world with Xiaomi,” the launch event welcomed media, partners, technology enthusiasts and customers to experience Xiaomi’s latest innovation and wider smart ecosystem. The new store at One Galle Face Mall powered by Abans has been designed to give customers a hands-on experience across Xiaomi smartphones, smart home products, lifestyle technology and connected devices, supported by Abans’ strong retail presence and customer service network.

Commenting on the milestone, Kain Wang, Country Head, Xiaomi Sri Lanka, said, “17th June is a significant day for Xiaomi in Sri Lanka as we celebrate two important milestones together: the launch of the Xiaomi 17T and the opening of our new Xiaomi Store powered by Abans at One Galle Face Mall. This reflects the strength of Xiaomi’s journey in Sri Lanka and our continued commitment to offering innovation, performance and smarter lifestyle experiences to local consumers. With Xiaomi 17T, we are bringing advanced Leica imaging, powerful performance and long-lasting battery life to users who want to do more with their smartphones. At the same time, our new store creates a dedicated space for customers to experience the Xiaomi ecosystem in a more personal and engaging way.”

Business

Prime Residencies forges ahead with construction of MON VIE, Colombo 05

Published

5 mins ago

2026/06/22

Thilina Walpola

Prime Lands Residencies PLC, the condominium development arm of Prime Group – the real leader in modern real estate, announced that construction is actively underway on MON VIE, a landmark ultra-luxury residential development located at Thalakotuwa Gardens, Colombo 05. Featuring never been seen developments in Sri Lankan residential architecture, including the country’s first-ever cantilevered viewing deck and its first floating rooftop restaurant, the project’s scope reflects its broader ambition to bring a genuinely new kind of living experience to Colombo.

Conceived under the defining philosophy of ‘The art of family living, perfected,’ MON VIE is designed for discerning modern families who seek both the refinement of contemporary urban living and the warmth of a genuine home. Rising Ground + 25 floors, with a signature rooftop, MON VIE will offer an exclusive collection of 2-bedroom and 3-bedroom luxury apartments, with prices starting from LKR 86 million. MON VIE’s crowning glory will be its floating rooftop restaurant, Sri Lanka’s first of its kind, conceived not only as an amenity for residents but as a gourmet destination of its own right, offering panoramic views of Colombo against a backdrop befitting the city’s most exceptional address in Colombo 05.