Proparco is supporting Sri Lankan SMEs

CBC started its operations in 1920 by supporting foreign trade activities. It has had its current form and name since 1969. CBC is today the leading private universal bank in Sri Lanka. Its clients are mainly individuals and companies.

The project involves the allocation of a USD 25m credit line to Commercial Bank of Ceylon (CBC), Sri Lanka’s leading private bank. The long-term funds provided by Proparco will support the development of CBC’s SME portfolio, a segment in which the bank is the leader: in 2016, CBC mobilized over EUR 1.8bn for SMEs, i.e. 38% of the financing provided to these companies by the banking sector. CBC also offers its SME clients capacity development programs, some in partnership with the Central Bank. Over 5,000 entrepreneurs have benefited from them since 2011.

Commercial Bank, the leader in SME financing in Sri Lanka, is seeking to diversify its sources of financing and extend its maturities to better serve its SME clients and strengthen the backing of its uses/resources. Proparco’s financing (USD 25m with a 5-year maturity) is fully in line with this strategy. CBC, the third largest bank in Sri Lanka, strongly supports employment for local communities. It is estimated that Proparco’s credit line will help create and maintain over 5,000 indirect jobs in the SMEs supported by CBC. By supporting SME development in Sri Lanka, the project will have positive economic and social impacts.