The National Credit Guarantee Institution (NCGI) has expanded its operations with the opening of a new office on the 7th floor of HNB Towers in Colombo, inaugurated by Deputy Minister of Industry and Enterprise Development Chathuranga Abeysinghe.
A highlight of the ceremony was the symbolic presentation of the 2,000th guarantee letter issued within just 15 months, enabling more than Rs. 14 billion in loan facilities for small and medium enterprises (SMEs).
The program, supported by the Asian Development Bank (ADB) and the Ministry of Finance, aims to strengthen entrepreneurship by widening financial access for businesses without collateral.
The NCGI expects to double its reach to 4,000 beneficiaries by year‑end, further boosting its contribution to the domestic economy.
Since beginning operations in January 2025 with its first loan guarantee for an agricultural project in Uva Province, NCGI has directed 20% of loans to women‑owned businesses and 24% to priority sectors including agriculture, IT, tourism, and exports. The largest share of beneficiaries has been in the Western, Southern, and Northern Provinces.
Addressing the new office opening, Deputy Minister Abeysinghe said the government plans to establish a Development Bank and strengthen cooperative banking to support the financial sector.
He praised the collateral‑free loan scheme as a breakthrough for entrepreneurship, noting: “Going forward, we can increase the loan amount, expand the number of beneficiaries, and strengthen services further.”
He added that, in collaboration with UNDP and ADB, efforts are underway to address challenges in microfinance and equity financing.
Recalling that private banks extended Rs. 2.1 trillion in loans to the private sector last year, the Deputy Minister urged financial institutions to introduce new mechanisms to support entrepreneurs.
Despite challenges, he noted Sri Lanka’s export sector continues to show growth, and emphasized the government’s full support for poverty eradication through entrepreneurship promotion. (Newswire)