People’s Bank, IDB partner to empower 5,000 micro, small and medium enterprises

Friday, 10 July 2020 00:30 - - {{hitsCtrl.values.hits}}

People's Bank Chairman Sujeewa Rajapakse (right) and IDB Chairman Upasena Dissanayake exchanging the MOU while Small and Medium Business and Enterprise Development Industries and Supply Chain Management Minister Wimal Weerawansa looks on - Pic by Upul Abayasekara

Exemplary landmark collaboration to bring out synergies of two key institutions to uplift backbone of country’s economy
Will extend technical, managerial support together with proper financial facilities to ensure sustainability of businesses

People’s Bank yesterday in collaboration up with the Industrial Development Board (IDB) initiated a program to develop micro, small and medium enterprises (MSMEs) in the country. A special event to announce the partnership was organised at the People’s Bank Staff Training College recently.

The event was attended by Minister of Small and Medium Business and Enterprise Development, Industries and Supply Chain Management Wimal Weerawansa, Secretary M.A. Ranjith, Additional Secretary N.G. Panditharathna, IDB Chairman Upasena Dissanayake, Director General P.L.U. Rathnamalala, Director Regional Development K.M.S.G. Bandara, together with People’s Bank Chairman Sujeewa Rajapakse, IDB CEO General Manager Ranjith Kodituwakku and IDB Deputy General Manager (Enterprise Banking) Krishani Narangoda, together with the staff of People’s Bank.

Based on the agreement, People’s Bank and the IDB have decided to empower around 5,000 MSMEs with technical and managerial support together with proper financial facilities to ensure sustainability of their businesses. The main objective of the project is to develop the industries with greater potential for export, import substitution, domestic value addition and employment generation.

The project is to be financed by the customised credit facilities offered by People’s Bank. MSMEs recognised and strengthened managerially, technologically and via market accessibility by the IDB are directed to the Bank for financial support. The respective loan amount will be decided based on the requirement and the financial feasibility and viability of the project.

The loans are to be considered subject to the conditions which are stipulated in the relevant SME loan products. Follow up and review of the loans and the scaling of the businesses will be carried out by the People’s Bank in collaboration with IDB. People’s Bank said this is a historical movement in the banking industry, where two government institutions join hands together to address a much needed requirement of developing entrepreneurship in Sri Lanka.

Now customers can register with IDB and undergo a comprehensive training and finally develop a pragmatic business plan before they meet the bank manager. Then the bank manager would be comfortable in evaluating the requirement of the customer and offering tailor-made and most suitable credit package required.

IDB has the strength of sourcing most potential customers through their regional centers across the country, and developing them with their experienced staff. People’s Bank has the largest outreach with specialised regional credit units to evaluate the proposals and develop customer relationships through its large branch network.