Thursday Jul 09, 2026
Thursday Jul 09, 2026
Wednesday, 8 July 2026 00:00 - - {{hitsCtrl.values.hits}}
The National Credit Guarantee Institution (NCGI) officially opened its new office on the 7th floor of HNB Towers, Colombo, today (07), marking a significant expansion of its operations.
A key highlight of the event was the symbolic presentation of the institution’s 2,000th credit guarantee, issued within just 15 months of operation. Through these guarantees, more than Rs. 14 billion in loans has been facilitated for small and medium-sized enterprises (SMEs) across Sri Lanka.
Implemented with the support of the Asian Development Bank (ADB) and the Ministry of Finance, the program aims to strengthen entrepreneurship by expanding access to finance for businesses that lack collateral. NCGI expects to increase the number of beneficiaries to 4,000 by the end of the year and further enhance its contribution to the national economy.
NCGI commenced operations in January 2025 by issuing its first credit guarantee for an agricultural project in the Uva Province. The highest number of beneficiaries so far has been recorded in the Western, Southern, and Northern Provinces. In addition, 20% of the total guarantees have been allocated to women-owned businesses, while 24% has supported priority sectors such as agriculture, information technology (IT), tourism, and exports.
Addressing the gathering, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe stated that the Government plans to establish a Development Bank and a stronger cooperative banking system in the future to further strengthen the country’s financial sector.
“There was a time when people said that initiatives like this could not be implemented in countries like ours. You have successfully and credibly taken up that challenge. As a Government, we have identified several issues within the financial sector, particularly the need to support entrepreneurship through collateral-free lending,” the Deputy Minister said.
“We are pleased with the progress made so far. We now have the opportunity to expand the volume of loans and increase the number of beneficiaries. We believe this institution will continue to strengthen its services and play an even greater role in the future,” he added.
He also noted that the Government is working with the United Nations Development Program (UNDP) and the Asian Development Bank (ADB) to identify sustainable solutions to challenges in the microfinance sector and the equity financing difficulties faced by entrepreneurs.
Recalling that the private banking sector provided approximately Rs. 2.1 trillion in loans to the private sector last year, the Deputy Minister encouraged banks and financial institutions to introduce innovative financing mechanisms for entrepreneurs.
He further emphasised that despite numerous challenges, Sri Lanka’s export sector continues to demonstrate significant growth and reaffirmed the Government’s commitment to supporting entrepreneurship as a pathway to poverty alleviation.
The event was attended by Deputy Minister Chathuranga Abeysinghe, CBSL Governor Dr. Nandalal Weerasinghe, NCGIL Chairman and Deputy Secretary to the Treasury Sanjaya Mudalige, NCGIL Chief Executive Officer Jude Fernando, Additional Director General Chamila Karunaratne, ADB Senior Financial Sector Specialist Manohari Gunawardena, senior executives from banks, representatives of chambers of commerce, and many distinguished guests.
