SME Archives

March 14, 2024

Unilever Sri Lanka and the Industrial Development Board (IDB) signed a three-year memorandum of understanding to uplift SMEs in Sri Lanka. This is a public private partnership between Unilever and the IDB to jointly support the growth and development of 20 Micro Small & Medium Scale entrepreneurs in Sri Lanka every year through the Industrial Development Fund (IDF). The IDF, under the supervision of the Industrial Development Board, and conforming to guidelines of the Central Bank of Sri Lanka provides financial capital in the form of low interest, repayable loans to Micro, Small and Medium Enterprises (MSMEs), enabling them to commence or expand local manufacturing in sectors prioritized by the Ministry of Industries to fuel an export-oriented economy. The first batch of loans were handed over to 10 female micro entrepreneurs at the occasion of the International Women’s Day on the 12th of March 2024.

Under this initiative, Unilever will contribute to the IDF, a portion of the revenue generated from its own and ongoing SME upliftment programme, “Saubhagya”, which, over the last 20 years has empowered over 15,000 rural females to start their own door to door selling operations with the provision of an initial stock of Unilever products.

Ali Tariq, Chairman & CEO of Unilever Sri Lanka, said, “Supporting the growth of small businesses, especially those managed by women, encourages the contribution and participation of all in the growth and success of Sri Lanka. We are grateful to the Ministry of Industries and the Industrial Development Board for inviting us to support their programme that will impact more than 60 small businesses and their families over the next 3 years”.

Dr. Saranga Alahepperuma, Chairman of the Industrial Development Board stated,” The SME sector stands as a cornerstone of Sri Lanka’s economy. IDB is steadfastly committed to providing SMEs with comprehensive support in terms of encouragement, promotion, and development. Notably, Women Entrepreneurship plays a vital role in fostering socio-economic growth. We express our deep gratitude to Unilever Sri Lanka for their contribution to empowering women entrepreneurs, thereby propelling the nation towards overall success.”

Hon. (Dr.) Ramesh Pathirana, Minister of Industries, also stated, “We are going through a decisive moment in the history of Sri Lanka where even the smallest actions we take can decide the wellbeing of our future generations. To ensure a fairer and more equitable outcome as we journey towards economic recovery, we must take care that we don’t leave behind anyone in the economy including MSMEs. In this regard, as the government, we are thankful that Unilever has stepped forward to help the local industry.

This partnership builds upon Unilever’s existing commitment to supporting MSMEs in Sri Lanka. The company anchors one of the largest value chains in the country, supporting small and medium businesses who form its eco system of manufacturing, distribution, and marketing operations to provide daily essentials to every household in the country every day.

Launched on International Women’s Day, this initiative underscores Unilever and IDB’s shared commitment to driving inclusive and equitable development and the importance of public-private partnerships for scalable impact.

February 15, 2024

Youth-led businesses can be a vital catalyst for change, sparking multiple positive ripple effects. This month, the British Council Sri Lanka launched a new project, ‘Youth-Led Green and Inclusive Initiatives in Businesses’, to harness the enthusiasm and energy of young business leaders and spearhead green and inclusive transitions in small and medium enterprises (SMEs) in Sri Lanka.

The project aims to provide knowledge, skills, resources, and networks to young entrepreneurs to help transform their existing businesses into inclusive and sustainable businesses. A systemic commitment to sustainability and inclusiveness can build customer loyalty, attract better talent, yield more investments, boost stakeholder engagement, build a stronger sense of belonging amidst a team, and improve innovation and efficacy for businesses. The timely project attempts to demystify green and inclusive initiatives, demonstrating how SMEs and young entrepreneurs can create progressive ecological, economical, and societal impact through their organizations.

30 young entrepreneurs were selected through an open call for applications. Entrepreneurs were chosen based on their existing knowledge, commitment towards sustainability and future plans. The selected youth represent varied sectors such as agriculture, food processing, tourism, and retail trade.

The project is delivered in partnership with the Green Movement of Sri Lanka and Lanka Social Ventures. Further, the Export Development Board, National Innovation Agency, Earth Dreams International, Thuru, Zero Trash and Centre for Living Sustainability at University of Highlands and Islands in Scotland will collaborate as eco-system partners.

“Through this project, we pledge to empower you with the knowledge, skills, and resources needed to transform your entrepreneurial visions into greater achievements. Together, we will explore innovative ways to incorporate green and inclusive practices, ensuring that your businesses not only flourish economically but also leave a positive impact on the environment and the wider society,” noted Sanjeevani Munasinghe – Head of Programmes, British Council in her welcome address.

“This will not be just another project with a series of activities. It will be a commitment of young people to be change makers in their enterprises and be role models for making businesses greener and inclusive,” said Chameera Wickramasinghe – Programme Manager-Non-formal Education at British Council, emphasizing how young people have a vital role to plan in the business sphere.

Manique Gunaratne (Manager, Specialised Training and Disability Resource Centre – The Employers’ Federation of Ceylon) was the guest of honour and highlighted the importance of inclusivity in business organisations, especially disability inclusion. Heminda Jayaweera delivered the keynote speech, on the topic ‘Sustainability Mindset’.

The launch was held at Courtyard by Marriott, with the participation of distinguished guests from state organisations, non-government organisations and the private sector. Several young entrepreneurs who were selected to be a part of the project were also present.

The project aligns with British Council’s commitment to fostering a greener and more equitable future, with a focus on providing the necessary tools and support to young entrepreneurs and thereby contribute to country’s net zero and green economy ambitions by 2050.

February 5, 2024

Challenges in talent acquisition, cost management, and ESG reporting emerge as the three top hurdles for SMEs as we enter 2024

New research from ACCA (the Association of Chartered Certified Accountants) highlights the pressing challenges and strategic innovation opportunities for small and medium-sized enterprises (SMEs).

The study, SMEs: Business challenges and strategic innovation opportunities, reveals three main challenges: escalating costs, workforce and talent management, and the evolving ESG (Environmental, Social, and Governance) reporting agenda.

SMEs form the backbone of Sri Lanka’s economy, accounting for 75% of all businesses, contributing to 20% of exports, 45% of employment, and generating over half of the Gross Domestic Product (52%).

ACCA Head of South Asia, Nilusha Ranasinghe says, “These businesses have long been a source of aspiration for many Sri Lankans. However, they now face daunting challenges and are among the least prepared for a future filled with uncertainties.

“Recent back-to-back crises have left numerous SMEs in Sri Lanka fighting for their existence, with many having to close their doors permanently. Our findings are a clarion call for SMEs to embrace strategic innovation. By addressing these challenges head-on, SMEs can unlock new growth avenues and strengthen their market position,” she adds.

The report emphasises the need for tailored strategies that can help SMEs navigate the evolving business landscape successfully, including embracing innovation, optimising resource management, and staying ahead of regulatory changes.

Key findings include:

Cost pressures and the economy: SMEs face significant increases in utility prices and supplies, with 58% of businesses highlighting higher costs as their top concern. A quarter of respondents said utility prices had surged by over 20%. This significant challenge underscores the need for effective cost management and innovative financial strategies.

Workforce and talent management: The study reveals a notable rise in job vacancies and challenges in filling specific roles. Increased job vacancies for professional workers were reported by 31% of businesses, and 14% were unable to find suitable candidates for clerical workers, technicians, and service and sales workers. This calls for a renewed focus on talent acquisition, skill development, and retention strategies.

SMEs and the ESG agenda: Nearly 50% of SMEs are now required to provide ESG information, highlighting the growing importance of sustainable practices. However, the report identifies a gap in the ability to generate and manage this data, presenting both a challenge and an opportunity for SMEs.

“In these testing times, SMEs must pivot towards innovative strategies to navigate the complexities of cost pressures, talent retention, and sustainable practices. Our research not only identifies the critical hurdles but also offers a roadmap for SMEs to emerge stronger and more agile,” says Nilusha.

The roadmap recommends the adoption of digital technologies, enabling SMEs to streamline operations, reduce costs, and enhance productivity. It also emphasises the importance of embracing sustainable practices, not only as a regulatory compliance measure but also as a strategic move to attract new business and customers.

It also encourages SMEs to develop and retain top talent through continuous learning and development opportunities.

In this rapidly evolving landscape, the role of accountants, especially those in small and medium-sized practices (SMPs) can be pivotal. Accountants are not just financial stewards but strategic advisers who can guide SMEs through complex challenges such as managing rising operational costs, navigating new regulatory requirements, and implementing effective ESG practices. Their expertise in financial management and strategic planning is crucial for SMEs to optimise resources, identify cost-saving opportunities, and ensure compliance with evolving regulations.

To access the full report please visit https://bit.ly/3NU1uKU

December 29, 2023

Adjudged ‘Best SME Bank’ and ‘Most Innovative Digital Bank’ in Sri Lanka in 2023

The Commercial Bank of Ceylon has been adjudged ‘Best SME Bank’ and ‘Most Innovative Digital Bank’ in Sri Lanka in 2023, rounding off a year of prestigious international and local awards.

The latest accolades were presented to the Bank by Global Business Outlook (GBO), a leading UK-based information provider on critical events and developments in the business world. This is the fifth occasion that Commercial Bank has been honoured by Global Business Outlook.

The Best SME Bank award recognises the special emphasis that Commercial Bank has placed on lending to the SME sector in Sri Lanka, including digital initiatives to identify, evaluate, support and monitor SMEs, and the Bank’s status as the largest lender to the sector.

The Bank also continuously engages with its SME customers on many levels, helping to build knowledge and capacity and facilitating networking and access to local and international markets.

The award for Most Innovative Digital Bank recognises the digital leadership achieved by the Bank via its digital banking platform in terms of usage and features, the Bank’s popular mobile and social media banking apps as well as its leadership in digital payments, and the role the Bank plays in the digital transformation of the banking industry.

Global Business Outlook has a dedicated readership comprising C-suite management and directors of some of the world’s top companies across various sectors. The magazine provides comprehensive, detailed, factual and up-to-date coverage of Global Banking, Insurance, Brokerage, Islamic Finance, Hedge Funds, Brands, Energy, Hospitality, Real Estate Startups and emerging technologies such as Block chain and Internet of Things,and follows key market trends and winning business strategies from around the globe.

Sri Lanka’s first 100% carbon neutral bank and the first Sri Lankan bank to be listed among the Top 1000 Banks of the World, Commercial Bank operates a network of 271 branches and 964 automated machines in Sri Lanka, is the largest lender to Sri Lanka’s SME sector and a leader in digital innovation in the country’s Banking sector. Commercial Bank has the widest international footprint among Sri Lankan Banks, with 20 outlets in Bangladesh, a Microfinance company in Nay Pyi Taw, Myanmar, and a fully-fledged Tier I Bank with a majority stake in the Maldives.

December 14, 2023

Commends resilience of SMEs with zero-closures; urgent support imperative to boost recovery

13^th December 2023: The Sri Lanka Chamber of Garment Exporters (SLCGE) commended the remarkable resilience of its apparel SME membership for rapidly adapting to tough global market conditions and ending the year with zero closures.

As the apex body for SMEs in the apparel sector, the SLCGE comprises 76 members – all of which operate outside of Sri Lanka’s Free Trade Zones (FTZ). “Over the past year, our industry has been hit hard with the 20% reduction in orders,” stated SLCGE Chairman Bandula Fernando. “SME apparel producers are among the worst impacted. However, they have also been among the first and fastest to respond to market contractions. Hence, even as the order book contracted, they have ensured that all existing orders have been completely fulfilled to the highest quality standards.

Their success in these trying times is a phenomenal achievement and a testament to their resilience and adaptability. But it is now imperative that our industry, the Government and all stakeholders work together to support a rapid recovery in the SME apparel sector.”

He added that the industry’s first priority was to double-down on trade facilitation in order to strengthen market access for these SMEs to at least get to the same level their regional competitors currently enjoy.

“Sri Lanka’s largest apparel firms have already set their sights on high-value niches in new and emerging markets across the globe. While these larger firms already have most of the capital, marketing, logistical and innovative capacity required to break into these markets, apparel SMEs are much more reliant on Government-Government engagement, trade concessions and facilitation to secure similar opportunities. “

He added: “While these SMEs have certainly been hit hard by the 20% reduction in orders, they can also benefit first and fastest from any progress we can drive in opening up new markets for them to compete in. We urge all stakeholders to add their support to this vital effort.”

Responding to concerns over a reported 20% reduction in apparel sector jobs over the past 12 months, Fernando explained how the SLCGE’s members had successfully mitigated the worst impacts on jobs and livelihoods by avoiding retrenchment. “Instead, we placed a freeze on new hires,” he explained.

“The majority of the 20% reduction in employment from the apparel sector was contained to natural attrition, which in turn prevented the mass job losses that had been the cause of much speculation over the past year. Some companies did request employees to stay at home, but these decisions are made in discussion with the individuals involved and responsible authorities, ensuring arrangements are in place to minimize impact on their livelihoods.

“But there is no question that all of these are stop-gap measures. As an industry that accounts for half of all national exports, we cannot afford to simply sit back and wait for a gradual recovery. We have to take proactive steps to uncover new and untapped opportunities, with special emphasis on how apparel SMEs can be integrated into these supply chains on an urgent basis. We call on our industry colleagues, the Government, regional partners, and the entire global apparel industry to support this vital endeavour,” Fernando stated.

The majority of Sri Lankan apparel SMEs primarily export to the United States, United Kingdom, EU and India, reflecting the industry’s regional partnerships. To address these challenges, the SLCGE has taken proactive measures, engaging in direct market access initiatives through buyer and consumer engagement. In particular, the Chamber is focused on strategic exploration of untapped markets in East Europe, the Middle East and East Asia.

“Factories are eager to diversify their market presence and identify new opportunities in non-traditional markets with growth potential. It is essential that we help apparel SMEs to increase their visibility and network in these emerging markets, encouraging them to participate in trade exhibitions, showcase their capabilities and establish new commercial partnerships.”

Fernando asserted that locally, Sri Lanka needs to move ahead with the difficult but essential work of improving ease of doing business and investing in technology and R&D to strengthen productivity and competitiveness. “In this manner we need to establish a new value proposition for Sri Lankan apparel that leverages on our unique strengths as an integrated sustainable, ethical manufacturing hub for global apparel brands to drive an industry-wide resurgence.”

October 2, 2023

Naturelac Paints, a local manufacturer and marketer of paints won the silver award in the medium category/construction sector at the Small and Medium Enterprise Development Awards (SLIM SMEDA) 2022 organised by the Sri Lanka Institute of Marketing. The award ceremony was held recently at the Monarch Imperial in Colombo. The Naturelac Paints Company has been selling their products in Sri Lanka for more than a decade. Their products, which were sold only in Gampaha and Colombo Districts, are now available to anyone in any part of the country at affordable prices. Having commenced its operations with only two employees in 2011, Naturelac has achieved greater success over the past, and their products have attracted thousands of customers from all parts of the island.

Among their much-asked-for products are paints such as emulsion, weather guard, waterproofing, roofing, wall fillers, wall potty, skim coat, enamel, floor paint, varnish, sealer, anticorrosive and metal primer. The wide ranges of products are manufactured at their factory located in Udugampola, and are available in hundreds of colours. “Our products are unique in that they are of high quality and significantly affordable in prices than other brands. Even those who bought paint 11 years ago still come to us because we offer the best paint at the lowest price. That is the best proof of the high quality and affordable price of our products. It is due to the high level of trust placed in us by our customers, and our hardworking staff that we were honoured with this award. We receive orders from different parts of the country. Going beyond the local market, we even export our products to the Maldives at present.” said Naturelac Paints Managing Director Thushara Wellala.

September 21, 2023

21 September 2023, Colombo: Small and Medium Enterprises (SMEs) have been one of the main contributors to the national economy. As a bank that is committed to unlocking potential, Seylan Bank recognized the opportunity that SMEs have to capitalize in the export market. Acting on this insight, Seylan Bank has been continuously enabling a range of SMEs to grow beyond the boundaries of the local market.

With its groundbreaking ‘Export Expert’ service, a transformative initiative that underlines the bank’s support towards SMEs and exporters, especially in the face of pandemic-induced challenges and economic uncertainties, Seylan Bank is further empowering the sector.

‘Export Expert’ offers a comprehensive and simplified financial solutions tailored to the unique needs of export trade. In a time when Sri Lanka’s government is actively promoting exports to strengthen the economy, this innovative service equips exporters with the knowledge and tools they need to confidently step onto the global stage.

Recognizing the intricate challenges exporters face when navigating international trade, Seylan Bank provides a suite of specialised financial solutions. These range from expert guidance on export documentation, documentary credits with confirmation services, and pre-and post-shipment facilities. This holistic support simplifies cross-border transactions, reducing risks, instilling confidence, and empowering SMEs to seize global opportunities.

One of the Export Expert service’s most significant advantages is its role in enhancing the competitiveness of Sri Lankan products globally. Seylan Bank’s competitive pricing of facilities enable SMEs to offer their goods at attractive prices, granting them a distinct edge in international trade. Furthermore, the availability of attractive loan facilities with competitive interest and exchange rates encourages SMEs to invest boldly in their export endeavours, fostering growth and innovation.

Dilan Wijegoonawardena, Assistant General Manager – International at Seylan Bank PLC, stated, “Our unwavering commitment at Seylan Bank lies in propelling the triumph of Sri Lankan SMEs on the global stage. Through our Export Expert service, we provide indispensable support, expert guidance, and tailored financial solutions. We enable our export customers to thrive amidst international opportunities. Seylan Bank promises to be the mentor required by export-oriented businesses, and we are confident that our efforts will contribute to Sri Lanka’s economy at large.”

Seylan Bank’s expansive global network, spanning over 500 banks across 100 countries, provides the means to establish robust global trade relationships. This extensive reach empowers SMEs to broaden their horizons and explore new markets with confidence. Moreover, the accessibility of Export Expert services at over 170 Seylan Bank branches across the country ensures a seamless and convenient process, enabling SMEs to tap into international opportunities without unnecessary hurdles.

In an era marked by economic shifts and uncertainties, Seylan Bank’s Export Expert service has emerged as a beacon of support for businesses seeking to thrive in the global export landscape. With tailor-made financial solutions, enhanced competitiveness, a far-reaching global network, and a faster turnaround time, Seylan Bank empowers Sri Lankans to break barriers and capture international markets. As Seylan Bank continues to champion the cause of our export sector, these enterprises stand poised to drive Sri Lanka’s export growth and contribute to the nation’s economic resilience and prosperity.

August 17, 2023

“USAID is working with MSMEs to improve their ability to attract private capital. Through enrollment in the MSME Funding Readiness Program, businesses can unlock fresh pathways for growth, capitalize on capital market opportunities, and contribute to the nation’s economic prosperity.” – Mr. Mark Peters- Economic Growth Advisor, USAID.
“A listing will not only strengthen your company’s capital and corporate image, but it will also have a significant impact on the company’s growth prospects.” – Mr. Rajeeva Bandaranaike, CSE CEO
“Fundraising through the CSE is a feasible option for SMEs to raise funding while maintaining control, enhancing the image and visibility of the SME, as well as creating a platform for future funding and growth.” – Amani Ranaweera, Acuity Partners (PVT) Ltd.
“Sacrificing cash flows as interest payments to lenders will hamper this opportunity for SMEs; hence, listing on the Colombo Stock Exchange is a great pathway to access equity capital, strengthen the capital structure, and thereby successfully face challenges in the business environment.” – Mr. Rohan Senewiratne, Atarah Capital (Pvt) Limited

The Colombo Stock Exchange (CSE) conducted an Issuer Relations Forum titled “Unlocking funding opportunities for SMEs through the Colombo Stock Exchange”, in association with the U.S. Agency for International Development (USAID) in Sri Lanka on 15^th August 2023 at the Mövenpick Hotel Colombo.

The forum provided insights for small- and medium-sized enterprises in key sectors, such as Agribusiness and Information, Communication & Technology (ICT), to discover capital-raising opportunities available at the CSE via listing on the Empower and Dirisavi Boards of the Exchange.

The forum was attended by the USAID Economic Growth Advisor, Mr. Mark Peters, USAID CATALYZE PSD Activity Team Lead Mr. Juan Forero, CSE Chief Executive Officer (CEO) Mr. Rajeeva Bandaranaike, Chief Regulatory Officer (CRO) Mr. Renuke Wijayawardhane, Senior Vice President, Commercial Ms. Punyamali Saparamadu, Atarah Capital (Pvt) Limited Managing Director Mr. Rohan Senewiratne, Acuity Partners (Pvt) Ltd Senior Vice President – Corporate Finance, Ms. Amani Ranaweera and representatives from investment banks, SMEs interested in raising capital, USAID, and CSE.

Delivering the opening remarks, USAID Economic Growth Advisor, Mr. Mark Peters, said “Sri Lanka’s sustainable development and recovery hinge on bolstering capital markets while creating additional funding avenues for SMEs across the nation. USAID is working with MSMEs to improve their ability to attract private capital. Through enrollment in the MSME Funding Readiness Program, businesses can unlock fresh pathways for growth, capitalize on capital market opportunities, and contribute to the nation’s economic prosperity.”

Through the USAID CATALYZE Private Sector Development (PSD) Activity, USAID Sri Lanka boosts private capital in vital Sri Lankan sectors. Such programs support the private sector in fostering inclusive economic growth and facilitating affordable financing access.

CSE CEO Mr. Rajeeva Bandaranaike, in his remarks, stated, “We are pleased to have received a positive response for this initiative today. Over the years we have seen numerous companies listing on the Colombo Stock Exchange, with both the company and its shareholders benefitting in the process.”

“We have witnessed a dynamic growth in the capital market of Sri Lanka. The Government’s recent Domestic Debt Optimization (DDO) process also had a positive impact on the CSE. We are actively looking at new products to be introduced to the market,” Mr. Bandaranaike added.

Encouraging the participants to list on the CSE, he further said, “A listing will not only strengthen your company’s capital and corporate image, but it will have a significant impact on the company’s growth prospects. Therefore, we encourage companies to make use of this opportunity.”

Addressing the gathering, Acuity Partners (PVT) Ltd Senior Vice President – Corporate Finance, Ms. Amani Ranaweera said “We are seeing tangible signs of an economic revival. After several challenging years, now is the time for SMEs to put the appropriate framework and processes in place to take advantage of capital raising opportunities.”

“Fund raising through the CSE is a feasible option for SMEs to raise funding while maintaining control, enhancing the image and visibility of the SME as well as creating a platform for future funding and growth. With USAID’s CATALYZE project gaining access to funding is now more affordable to SMEs,” she added.

Speaking at the forum, under the subject of “Listing on the CSE as a Game Changer”, Mr. Rohan Senewiratne, Managing Director of Atarah Capital (Pvt) Limited stated “SMEs comprise more than 75% of enterprises, account for more than 20% of Sri Lankan exports, 45% of employment and 52% of the GDP.”

“SMEs can play a vital role in the economic recovery of Sri Lanka if they are able to gain access to raise equity capital. Sacrificing cash flows as interest payments to lenders will hamper this opportunity for SMEs hence listing in the Colombo Stock Exchange is a great pathway to access equity capital, strengthen the capital structure and thereby successfully face challenges in the business environment,” Mr. Senewiratne added.

Further, an insightful panel discussion was held on the subject of “Journey towards listing and life after listing” with the participation of CSE CRO Mr. Renuke Wijewardhane, USAID CATALYZE PSD Activity Team Lead Mr. Juan Forero, NDB Investment Banking Ltd Senior Vice President Mr. Saminda Weerasinghe CFA, Capital Alliance Partners Limited CEO Mr. Nishok Goonasekera, Prime Lands Residencies PLC Co- Chairman Mr. Premalal Brahamanage, Luminex CEO Mr. Palitha Herath with the Senior Vice President, Commercial Ms. Punyamali Saparamadu as the moderator.

August 16, 2023

As Sri Lanka focuses on economic recovery, transforming the digital payment landscape for businesses will be a strategic area to consolidate growth, says Avanthi Colombage, Country Manager for Visa in Sri Lanka and Maldives.

Visa, a global leader in digital payments, believes that unlocking the potential that digitizing payments can offer to the SME (Small and Midsize Enterprise) or small business sector in Sri Lanka has the ability to accelerate the economy and drive growth.

While Sri Lanka’s digital payments ecosystem is estimated to reach $7 billion in 2023^[1], this is a small portion of all consumer spends, otherwise called digital PCE (personal consumption expenditure). While cards have grown to 21.2 million^[2] (May ’23), there lies a tremendous opportunity for digital payments to grow and empower communities with their inherent ease of use and transaction safety, says Avanthi.

In the past few years, Visa has enhanced the seamless, cashless transaction experience for consumers everywhere with innovative digital technology like contactless payments and tap to phone.

“Now, empowering the SME sector with the right tools and infrastructure to make and receive digital payments would uplift businesses and help drive the economy in the right direction. At Visa, we continually engage with SMEs, empowering them through our ecosystem partners such as banks and fintech solution providers. For the SME sector in Sri Lanka, enabling comprehensive digital payment acceptance would mean less operational cost, greater efficiency, and a positive customer experience, all improving the potential of business tremendously.” She adds.

Today digital payment acceptance is not restricted to only the entrenched POS and mPOS devices, where one can tap or dip a credit or debit card to pay. In addition to these highly proliferated forms, many emerging payment forms can give small businesses a stimulus towards greater acceptance and engagement with consumers, both domestic and tourists.

Of these, QR code-based payments are a great, asset-light way for merchants (retailers and service providers alike) to take the first step into the digital payments ambit. “Without investing heavily in devices or infrastructure, merchants can use QR codes to accept payments from customers who save their Visa card credentials securely on their smartphones,” said Avanthi. When the QR code is shown to a consumer, they can scan it and use their digitally stored Visa details to pay without any hassle. A few banks in Sri Lanka already offer this facility to their Visa cardholders and this also allows for tourists to use their devices to pay for goods or services.

Tap to phone is another innovative yet simple method that promotes digital inclusivity and reduces the use and need of paper receipts. This allows the merchant to use their own smartphone to accept payments from consumers, enabled by contactless technology. Here, the shopper can pay a merchant by tapping their contactless Visa card on the merchant’s smartphone. There are significant benefits for small businesses with these totally contactless transactions – saving time as there are no cash and change hassles, reducing queues in stores and doing away with printing transaction receipts as the cardholder is intimated through SMS.

As more merchants see the value in ecommerce, they will benefit greatly from giving consumers an array of digital payment options to choose from. Avanthi says that with Sri Lankan consumers increasingly shopping online, some of the top ecommerce categories witnessing growth are telecom/utility bill payments, government and educational services, retail stores, insurance, quick service restaurants, airlines and restaurants. Lodging and professional service providers, ride-hailing services and food delivery are some of the other categories witnessing growth of digital payments across Sri Lankan cardholders and tourists visiting Sri Lanka.

Avanthi also says Visa is working with various partners, both financial institutions and large merchants as well as new age players like fintechs, to harness digital payment opportunities for SMEs. Visa is also making it easy for small businesses and merchants to receive payments through simple integrations like SMS based payment links. Merchants can use this to generate digital invoices and get paid by the customer online and remotely, making for efficient payment collection and reconciliation.

With tourist arrivals increasing in Sri Lanka and the economy looking up, it is only apt that merchants start providing payment options that international travelers are already familiar with, be it tapping a card or phone, scanning a QR code or paying online. With its wide network of partners and clients, Visa is helping uplift businesses through and reinforcing the potential of the SME sector. Visa believes that empowering people and businesses with technology and digital payments can drive the digital economy and create opportunities for the SME sector to grow within and outside Sri Lanka.

[1] https://www.statista.com/outlook/dmo/fintech/digital-payments/sri-lanka

[2] https://www.cbsl.gov.lk/sites/default/files/Payments_Bulletin_1Q2023_e.pdf

August 16, 2023

Catering to the working capital needs of the business community, Sri Lanka’s most SME-friendly bank HNB PLC, announced the launch of Easy Draft, a new hybrid facility designed to meet operational capital and urgent cash flow needs.

Developed to meet the funding requirements of corporates, emerging corporates, SMEs and personal businesses making use of HNB’s leasing facilities, Easy Draft swiftly addresses short-term working capital requirements by offering easy access to funds, ensuring the efficient management of day-to-day operations.

“In today’s fast-paced landscape, agility and access to quick funds are paramount to the success of a business. Given that our objective has always been to support entrepreneurs and SMEs, the bedrock of our economy, we believe it is essential that this sector requires greater flexibility. The launch of this new facility offers our customers the peace of mind to take advantage of any opportunity that may come their way with no worry about undue financial costs or long-term commitments,” HNB Head of Leasing Susitha Perera said.

Customers making use of HNB’s rental facilities, the lowest in the industry, have the option of choosing an Easy Draft tenure that best aligns with their financial requirements. HNB offers a minimum tenure of 12 months, extendable up to 18 months providing borrowers with the flexibility to adapt to changing business dynamics. Moreover, customers can settle their Easy Draft early, at no additional charge.

The facility comes with competitive interest rates, along with transparent and fair pricing, ensuring borrowers can manage their finances responsibly. Additionally, the lease amounts offered through this facility range from Rs 1 million to 50 million, depending on a preliminary assessment and the business’ requirements. Customers also have the option to offer more than one vehicle, subject to specified exposures, further enhancing their access to crucial funds.

With 254 customer centres and 800+ Self Service Machines (SSMs) nationwide, HNB is one of Sri Lanka’s largest, most technologically innovative private banks. Consolidating its legacy in sustainability, good governance and corporate excellence, HNB was crowned the Best Corporate Citizen for 2022 at the Ceylon Chamber of Commerce Best Corporate Citizen Awards. The bank further secured four additional accolades, including being ranked among the Top 10 Best Corporate Citizens and taking home the Governance category and Sustainability Champion for the Finance sector titles.

Additionally, HNB was ranked among the World’s Top 1,000 Banks list compiled by the prestigious UK-based Banker Magazine for the sixth consecutive year in 2022, in addition to being crowned the Best Retail Bank in Sri Lanka for the 13th occasion at the prestigious International Excellence in Retail Financial Services Awards 2023 hosted by the Asian Banker Magazine.

Older Posts

Unilever and IDB Partner to Uplift SMEs and Livelihoods

British Council launches Youth-Led Green and Inclusive Initiatives in Businesses project in Sri Lanka

Rising costs amidst global economic shifts is top concern for 58% of SMEs as they also face workforce challenges

ComBank honoured by Global Business Outlook with prestigious double

SLCGE calls for focused support to secure resilient apparel SME recovery

Naturelac Paint bags SLIM SMEDA Silver Award

Empowering Sri Lankan SMEs with Export Expertise: Seylan Bank offers comprehensive support services and knowledge sharing

CSE and USAID’s SME forum draws considerable interest

Enabling SME sector in Sri Lanka to digitize payments can accelerate economic growth – Visa

HNB Easy Draft to boost financial agility of enterprises with seamless access to funds