Friday Oct 03, 2025
Friday Oct 03, 2025
Monday, 2 June 2025 03:46 - - {{hitsCtrl.values.hits}}
In a landmark move aimed at revitalising Sri Lanka’s micro, small, and medium enterprise (MSME) sector, the Government will officially launch the National Credit Guarantee Institution Ltd., (NCGIL) today (2).
The institution, which operates under the Finance, Planning and Economic Development Ministry, is expected to provide a vital safety net for entrepreneurs by enabling access to credit without the traditional burden of property-based collateral.
The NCGIL offers cash flow-based guarantees to banks and other financial institutions, encouraging them to lend to businesses that demonstrate viability but lack fixed assets to secure loans. This marks the first time such a model—jointly implemented by the Government of Sri Lanka and its financial partners—has been introduced on a national scale to empower the country’s MSMEs.
The ceremonial inauguration will take place today with the participation of several high-profile dignitaries and stakeholders including Finance Deputy Minister Dr. Harshana Suriyapperuma, Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha Fernando, Treasury Secretary Mahinda Siriwardana, Central Bank Governor Dr. Nandalal Weerasinghe, and Asian Development Bank (ADB) Director General Leah Gutierrez, who has been a key partner in providing technical and advisory support to the project, and Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe.
The NCGIL will work closely with commercial banks, development banks, and non-bank financial institutions to roll out credit guarantees for a range of industries, including manufacturing, services, agribusiness, and technology-based ventures. By shifting the risk-sharing model and increasing credit flow, the agency aims to unlock the economic potential of thousands of small-scale entrepreneurs.
