Timely delivery of finance to SME sector vital - Cabraal

by Lalin Fernandopulle

Expediting the delivery process of financial solutions to the SME sector is vital to ensure its growth, said Central Bank Governor Ajith Nivard Cabraal addressing the opening of the SME Banking Road Show organised by the International Finance Corporation in collaboration with six leading private sector banks in Sri Lanka at the Sri Lanka Exhibition and Convention Centre on Friday.

Cabraal said timely delivery of finance to the SME sector is what is lacking in finance and banking institutions today and that delay in delivery will not help entrepreneurs to develop their enterprises and achieve their goals.

SMEs which enhance productivity, efficiency and innovation in all key sectors are vital to the country's economic development. With a workforce of over 70 percent and a significant contribution to the GDP the role of the SMEs cannot be ignored, Cabraal said.

He said the SME sector enhances economic growth in other provinces which are far less developed than the Western Province. The per capita income in the Western Province exceeds US$ 1, 900 while in other provinces the per capita income is less than US$ 730.

Road shows are usually organised in major cities such as London New York and Paris to cater to the financial needs of big business institutions. A program of this nature will boost the small and medium sector enterprises considered the backbone of economies of developing countries.

The CB will collaborate with the Government to develop the SME sector in keeping with the 10-year development plan of President Mahinda Rajapaksa. The Mahinda Chintana concept has prioritised development of SMEs as a means to reduce poverty in the rural sector, the Governor said.

Country Manager, IFC Sri Lanka and the Maldives Gilles Galludec said SME Road Shows will be organised in other provinces to promote growth through effective and speedy delivery of financial solutions.

CEO DFCC Bank Nihal Fonseka said the objective of financial and banking institutions in catering to SMEs should be to ensure that small and medium enterprises will be one day transformed into large enterprises.

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