HNB and LIIN partner to create access to private equity for SMEs

Lanka Impact Investing Network Chairman Chandula Abeywickrema (right) exchanging the MOU with Hatton National Bank Deputy General Manager SME and Micro Finance Rajive Dissanayake. Others from left: HNB undergraduate Trainee Janani Gamage, Junior Executive SME Division Shehan Fernando, Senior Manager of Business Banking Dimitri Jude Pillai, Head of SME products & Partnerships Nithiyanatham Kethiswaran, LIIN General Manager Vishwanath Gunawardena, Executive Business Development and Partnerships Supeshala Samarawitharana

National Advisory Board for Impact Investing in Sri Lanka (NABIISL), operating under the auspices of Lanka Impact Investing Network (LIIN), has joined forces with Hatton National Bank (HNB), a leading banking institution committed to fostering economic growth. 

The collaboration aims to identify and support Small and Medium-sized Enterprises (SMEs) for equity investments through the Social Enterprise Fund (SEF), marking a significant milestone in the development of Sri Lanka’s impact investing ecosystem.

Sri Lanka’s pioneering impact investment firm, LIIN, is dedicated to directing private capital towards addressing critical social and environmental issues in the country. The collaboration with HNB aligns with LIIN’s mission and underscores the commitment to building a more dynamic impact investing landscape.

The establishment of NABIISL, in partnership with the Global Steering Group for Impact Investing (GSG), further reinforces Sri Lanka’s position as a destination for responsible investments. GSG’s presence in the country unlocks avenues for sustainable development and inclusive growth, appealing to both local and foreign investors.

The primary objective of NABIISL is to catalyse the growth of Impact Enterprises in Sri Lanka through financial support and the operation of the SEF. Initiated in 2018, SEF, in collaboration with Capital Alliance Group and the United Nations Development Program (UNDP), is dedicated to providing capital to Impact Enterprises, enabling them to generate substantial social and environmental impact.

HNB, a key player in Sri Lanka’s banking sector, has a significant client base of SMEs seeking financial services and opportunities for growth.

LIIN and Social Enterprise Lanka presented ‘Ath Pavura’, a ground breaking television show created with HNB as the title sponsor. This initiative empowers social entrepreneurs in Sri Lanka, providing them with a national platform to showcase their businesses and attract investments from local investors.

The partnership between HNB and LIIN is strategically positioned to identify SME clients within HNB’s network prepared for equity investments through the SEF. The Social Enterprise Fund focuses on supporting micro, small, and medium-level social entrepreneurs in the acceleration stage of their business life cycle.

HNB Deputy General Manager of SME and Micro Finance Rajive Dissanayke said: “HNB is committed to supporting the growth of SMEs, and through this collaboration, we can contribute to creating a more sustainable and impactful business environment in Sri Lanka.”

In its initial phase, NABIISL, acting as a knowledge hub, will provide essential awareness sessions, specialised expertise, personalised guidance, and steadfast support to HNB throughout the process of identifying, nurturing, and preparing SME clients for potential equity investments.

This collaboration signifies a significant step towards enhancing the impact investing landscape in Sri Lanka, contributing to the nation’s sustainable development goals and attracting both local and foreign investors to actively participate in responsible investments.