ADB to expand lending loan to Sri Lanka’s Hatton National Bank though new agreement
The Asian Development Bank (ADB) and Sri Lanka’s Hatton National Bank (HNB) have reportedly reached an agreement to expand lending and provide guarantees of up to US$ 20 million to support small businesses and low-income families.
A recent media statement issued on the agreement has stated that the two banks signed the new partnership agreement to support development of Sri Lanka’s burgeoning microfinance sector.
“Together, HNB and ADB will improve access to financial services to even more low- income families and small-business owners, especially in rural and remote areas in Sri Lanka,” ADB Private Sector Financial Institutions Division Senior Investment Specialist Sabine Spohn has said.
Only about 17% of women have access to formal financial services in Sri Lanka.
“Through the Microfinance Program, ADB and HNB aim to fill market gaps by sharing risks to promote local currency lending to these institutions. This helps mitigate microfinance institutions’ exposure to foreign exchange risks,” the statement has further noted.
“In our experience, access to finance can often be the crucial factor that determines whether a small scale entrepreneur is able to achieve his dream of a thriving business,” HNB Deputy General Manager – SME & Midmarket Jude Fernando, has added.
OSL take:
The latest agreement reached between the ADB and Sri Lanka’s HNB is yet another programme aimed at promoting small businesses and low income families in Sri Lanka. The Sri Lankan government has given prominence to assisting start ups and small and medium scale businesses. The creating of a new layer of businesses in the country would result in the expansion of business opportunities for foreign businesses/investors within the island nation. Foreign companies could look at forming partnerships with these small businesses or even introduce new businesses for them to launch their entrepreneurship with the financial assistance available to them at present.
| Article Code : | VBS/AT/20181003/Z_1 |