The Commercial Bank of Ceylon’s continued leadership in small and medium enterprise (SME) lending underscores the central role of private-sector credit in supporting Sri Lanka’s economic recovery and medium-term growth prospects.
According to the Ministry of Finance’s Final Budget Position Report for 2024, Commercial Bank retained its position as the country’s largest lender to SMEs for the fifth consecutive year, disbursing Rs. 330.9 billion during the year. This accounted for 30.3% of the Rs. 1,090 billion in total SME credit extended by 16 state and private sector banks, placing the Bank well ahead of its closest competitor and highlighting a high level of credit concentration in support of enterprise activity.
The lending profile reflects a strong bias towards productive sectors, particularly industry. Commercial Bank extended Rs. 266.8 billion to industrial SMEs in 2024, representing nearly half of the Rs. 557.6 billion in total industrial lending across the banking system. This emphasis aligns with national policy objectives aimed at strengthening domestic production, value addition and export competitiveness at a time when industrial output remains critical to stabilising growth and employment.
SMEs are widely recognised as a backbone of the Sri Lankan economy, contributing significantly to job creation, regional development and income generation. Commercial Bank’s scale of engagement with the sector suggests a sustained institutional strategy to channel capital into enterprises with high multiplier effects. The Bank reports that more than 8,700 businesses benefited from its SME-focused initiatives in 2024, with spillover impacts on employment and community-level economic activity.
Commenting on the Bank’s performance, Managing Director/CEO Sanath Manatunge said the SME sector’s fortunes are closely intertwined with the country’s broader economic trajectory, particularly as businesses navigate climate-related shocks such as the recent cyclone. He noted that the Bank intends to maintain credit flows to support recovery, resilience and continuity among affected enterprises.
Beyond balance-sheet growth, Commercial Bank has positioned SME financing within a broader development framework that combines credit with advisory services, early intervention for distressed businesses and digital enablement. Its Business Revival and Rehabilitation Unit and the ComBank LEAP | GlobalLinker platform are designed to strengthen enterprise capabilities, market access and long-term sustainability, moving beyond traditional lending models.
A key feature of the Bank’s SME strategy in 2024 was the rollout of Sri Lanka’s first Artificial Intelligence-powered SME credit underwriting system. By leveraging machine learning and predictive analytics to assess behavioural and financial data, the platform is expected to accelerate credit decisions, improve risk management and widen access to finance—particularly for underserved segments of the SME market.
Commercial Bank’s sustained dominance in SME lending reflects a broader institutional focus on enterprise resilience, innovation and inclusive growth, including support for women-led and export-oriented businesses. Through targeted programmes such as Viyapara Diriya and continued investment in digital infrastructure, the Bank has reinforced its role as a conduit for private-sector–led economic expansion.
As Sri Lanka seeks to consolidate macroeconomic stability and transition towards a growth-oriented phase, the depth and direction of bank credit to SMEs will remain a key indicator of economic momentum. Commercial Bank’s lending performance in 2024 suggests that well-capitalised, technologically enabled financial institutions can play a decisive role in translating policy objectives into tangible outcomes for businesses and the wider economy.
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