The National Credit Guarantee Institution (NCGI) officially opened its new office on the 7th floor of HNB Towers, Colombo, yesterday (07), marking a significant expansion of its operations.

A key highlight of the event was the symbolic presentation of the institution’s 2,000th credit guarantee, issued within just 15 months of commencing operations. Through these guarantees, loans amounting to more than Rs. 14 billion have been facilitated for small and medium-sized enterprises (SMEs) across Sri Lanka.

NCGI expects to increase the number of beneficiaries to 4,000 by the end of this year while further strengthening its contribution to the national economy.

NCGI commenced operations in January 2025 by issuing its first credit guarantee for an agricultural project in Uva Province. The highest number of beneficiaries so far has been recorded in the Western, Southern and Northern provinces. In addition, 20% of the total guarantees have been allocated to women-owned businesses, while 24% have supported priority sectors including agriculture, information technology (IT), tourism and exports.

Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said the Government plans to establish a Development Bank and strengthen the cooperative banking system in the future to further develop the country’s financial sector.

“There was a time when people said initiatives like this could not be implemented in countries like ours. You have successfully and credibly taken up that challenge. As a government, we have identified several issues within the financial sector, particularly the need to support entrepreneurship through collateral-free lending,” he said.

He also noted that the Government is working with the United Nations Development Programme (UNDP) and the Asian Development Bank (ADB) to identify sustainable solutions to challenges in the microfinance sector and the equity financing difficulties faced by entrepreneurs.

Recalling that the private banking sector provided approximately Rs. 2.1 trillion in loans to the private sector last year, the Deputy Minister encouraged banks and financial institutions to introduce innovative financing mechanisms to support entrepreneurs.

He further emphasised that despite numerous challenges, Sri Lanka’s export sector continues to demonstrate significant growth and reaffirmed the Government’s commitment to promoting entrepreneurship as a pathway to poverty alleviation.

The event was attended by Deputy Minister Chathuranga Abeysinghe, Central Bank Governor Dr. Nandalal Weerasinghe, NCGI Chairman and Deputy Secretary to the Treasury Sanjaya Mudalige, NCGI Chief Executive Officer Jude Fernando, Additional Director General Chamila Karunaratne, ADB Senior Financial Sector Specialist Manohari Gunawardena, senior executives from banks, representatives of chambers of commerce and other distinguished guests.