Over 1,800 at SME Banking Road show

Over 1,800 small and medium entrepreneurs attended the SME Banking Road Show at the Sri Lanka Exhibition and convention Centre (SLECC) recently looking for capital to start a business and capital to expand an ongoing business.

They found not only access to capital, but bankers ready and willing to advise on how best to present an application and a readiness to lend to this sector, which is generally considered a high risk sector.

While the presence of the SME service providers and the seminar for SMEs gave insights into running an SME, those who came looking for low cost capital aired their views on the high cost of capital.

"SMEs play a vital role in the Sri Lankan economy, comprising approximately 94% of total business units, 36% total industrial employment and contributing 20% of the total value addition to the economy" said A. L. Somaratne, Program Advisor, International Finance Corporation, South Asia Enterprise Development Facility stressing the importance of the SME sector.

The objective of the SME Banking Road Show was to make the SMEs aware of the lending banks requirements and the importance of documentation and proper financial record keeping to access capital.

Ranjith Guruge, formerly employed by a multinational said, "Bankers are giving loans at preferential rates to multinationals and this is not fair.

All the conditions are for SMEs, and added to that a higher interest rate is also charged."

The SME Banking Road Show will travel from the Western province to the Wayamba, Central and Southern province in the coming months delivering advisory services to SMEs and Bankers handling SME lending.