Enterprise banking to help SME enterprises
by Lalin Fernandopulle
[email protected]
The Lankaputhra Development Bank will focus on enterprise banking by
assisting small and medium scale entrepreneurs to absorb credit
facilities in a productive manner, said the new Chairman Lankaputhra
Development Bank, Sarath De Silva.
Sarath De Silva. |
de Silva who took over duties on Tuesday told the Sunday Observer
that most development banks have lost focus in supporting the SME sector
due to commercial banking. The small and medium scale entrepreneurs are
the backbone of the country's economy and the contribution to
development cannot be undermined.
"Our mission is to be the core development bank in the country. The
primary objective for the merger between the SME Bank and Lankaputhra
Development Bank is to mobilise resources to strengthen the SME sector",
he said.
Accessibility to funds and the capacity to absorb credit facilities
are the primary concerns of the bank. The ability to repay loans is not
the sole criteria in micro financing. Banks oriented towards SME
development should provide consultancy, training and develop the
infrastructure.
In response to the alarming inflation growth, he said agriculture,
fisheries, gem and jewellery, animal husbandry, handicraft, leather
products and cottage industry are some of the important sectors that the
bank has been supporting.
de Silva said that the bank had performed well over the years as the
premier SME development bank in the country. We want to make the people
realise that the Lankaputhra Development Bank is not only concerned
about lending loans but also ensure that the growth of enterprises is
sustained.
"We are not a collateral based bank but a project oriented bank.
Banks seek collateral when the risk is high in lending. Our concern is
the development of enterprises", he said.
The bank will support infrastructure, fisheries, tourism and
agro-based activities in the Eastern province with the Ministry of
Nation Building.
With regard to the integrity and independence of the bank, the new
Chairman said that the bank will adhere to the highest standards,
integrity and performance. "Political appointments in State banks does
not mean that the management should be subservient to politicians.
Government institutions have to implement the policies of the government
as long as the decisions do not affect the bottom line", Silva said.
Prior to assuming duties as the Chairman of Lankaputhra Development
Bank, de Silva served the Bank of Ceylon for 37 years and was the
General Manager for two years. |