The backbone of a nation: Commercial Bank powering Sri Lanka’s SME renaissance

As Sri Lanka accelerates its economic recovery, Small and Medium Enterprises remain the driving force behind employment, innovation, and regional growth. For five consecutive years, Commercial Bank of Ceylon PLC has been the country’s largest lender to the SME sector, reinforcing its role not merely as a financier, but as a strategic partner in national development. In this interview, Mithila Shamini, Assistant General Manager – Personal Banking / SME, shares how the Bank’s record prudent growth, digital innovation, AI-powered credit solutions, and deep rural outreach are building a powerful ecosystem that enables Sri Lankan entrepreneurs to grow sustainably and compete with confidence on the global stage.

Q: Commercial Bank has recently been confirmed as the largest lender to the SME sector for the fifth consecutive year. To what do you attribute this remarkable and consistent success?

A: This achievement is a direct result of our purpose-driven approach to banking. Since 2020, we have consistently led the industry, and in 2024 alone, we disbursed Rs. 330.95 billion to the SME sector. This represents 30.4% of the total industry disbursement from 16 commercial and specialized banks. While the official Ministry of Finance results for 2025 are yet to be released, we firmly believe that we remain the market leader given the unprecedented scale of our efforts throughout 2025.

We attribute this consistency to our multifaceted support system. We don’t just provide capital; we provide a complete business ecosystem. With   specialized SME Managers deployed across all regions and an increase in our dedicated SME cluster branches to 62, we ensure that expert advice and financial assistance are accessible to every entrepreneur, even in the most challenging external environments. We invest heavily on staff training, specially for our staff members in the 67 Agriculture and Micro Finance Units, so that they are equipped with the know how to assist our customers. Our prudential growth  in the SME portfolio during 2025, is a testament to the fact that we stayed by our customers’ side when they needed us the most. 

Apart from this remarkable achievement we were also bestowed with many prestigious accolades as the SME Bank of the Year in Sri Lanka by entities such as Global Finance, Asian Banking and Finance Magazine, Global Business Review magazine, Gazette International magazine, World Economic Magazine, Global Business Magazine and Finance Derivative magazine. 

Q:Beyond the numbers, how is the Bank ensuring that these SMEs can actually compete on a global stage?

A:Digital empowerment is the key to local businesses surviving in a global market. We were the first local bank to introduce a comprehensive digital business ecosystem, Commercial Bank LEAP GlobalLinker. This platform has already on boarded over 14,000 SMEs and helped them and in the process of connecting them to a global network of more than 400,000 members across 152 countries.

Moreover, we have revolutionized the lending process by launching Sri Lanka’s first AI-powered SME Credit Underwriting Solution. Developed with a top global consulting firm, this  solution uses advanced machine learning to deliver hyper-personalized products and significantly faster loan approvals. We are moving beyond traditional banking to become a technology-driven partner that helps our customers cross border levels.

Q: We’ve discussed the impressive lending figures, but many small business owners need more than just a loan; they need guidance. How is Commercial Bank literally building these businesses from the ground up and ensuring they have the skills to survive?

A:You’ve touched on a vital point. We view ourselves as an “engine room” for value-added services. Providing capital is only half the battle; the other half is ensuring the entrepreneur has the knowledge to manage that capital effectively. We have a multifaceted approach that blends financial assistance with rigorous non-financial support, such as consultancy and specialized skill development.

To ensure this expertise is available nationwide, we invested heavily in our own people first. In 2025, we conducted intensive training programs for our staff members. Our primary objective is to have at least one specially trained person in every single branch who can professionally evaluate complex project lending proposals and provide high-level advisory services to our clients.

Q:Sustainability and inclusivity are major global themes. How has the Bank integrated these into its SME strategy?

A: Sustainability is non-negotiable for us. We have strategically repriced our ‘Diribala Green Development Loan’ to incentivize solar installations and green initiatives, helping businesses combat rising electricity costs while adopting eco-friendly practices.

In terms of inclusivity, our support for Women-owned SMEs is a major priority. In 2025, this portfolio grew by 22%. We believe that by grooming women entrepreneurs and rural micro-businesses through initiatives like our Dirishakthi Value Chain Development Program, we are strengthening the very fabric of the Sri Lankan economy. 

The Bank also proactively identified the Ditwah-affected customers and extended maximum relief measures in reviving their business by adopting a handholding engagement.

Q:Rural outreach has always been a challenge in banking. How is Commercial Bank bridging this gap?

A:  We go where the customers are. We utilize 67 specialized Agriculture and Micro Finance Units (AMFUs) and three ‘Bank on Wheels’ mobile units to serve the unbanked in remote areas. In 2025, we disbursed substantial amounts to strengthen direct agriculture and for microfinance credit lines. Our ‘Dirishakthi’ program also focuses on grooming micro-entrepreneurs to eventually transition into the formal SME stream.

Q: Looking ahead to the rest of 2026 and beyond, what are the Bank’s strategic priorities for this sector?

A: Our roadmap is ambitious and data-centric. We will continue to refine our AI-based underwriting solutions to make credit even more accessible & customer centric. A major focus will be on building an eco system around Supply Chain Financing, specifically leveraging Supplier and Distributor Finance models to build a  cost effective working capital financing opportunities for our clients.

We are also committed to national priorities, such as promoting import substitution, local manufacturing, and export-led growth. By integrating Green Financing and Climate Financing into our core products, we aren’t just helping businesses grow; we are ensuring they grow sustainably. Our goal remains unchanged: to be the primary partner for every Sri Lankan entrepreneur, providing them with the stability and innovation to scale up their businesses to reach the global stage.