Commercial Bank of Ceylon has emerged as the leading lender under Sri Lanka’s National Credit Guarantee Scheme, with loans amounting to Rs. 2.97 billion disbursed to micro, small and medium enterprises (MSMEs).

The milestone was marked with the National Credit Guarantee Institution Limited (NCGIL) issuing its 2,000th credit guarantee to Commercial Bank, highlighting the bank’s contribution to expanding access to finance for businesses that lack conventional collateral.

Commercial Bank has secured approximately 600 guarantees under the scheme, representing nearly one-third of all guarantees issued to date. Its lending has supported MSMEs across the country, including women-led enterprises through NCGIL’s ‘Liya Shakthi’ scheme.

The National Credit Guarantee Scheme enables participating financial institutions to provide loans to viable businesses that have adequate repayment capacity but are unable to meet traditional collateral requirements. Under the arrangement, NCGIL provides partial credit guarantees, allowing banks to extend uncollateralised financing while sharing lending risks.

NCGIL, in which the Sri Lankan Government is the principal shareholder, works with 13 shareholder financial institutions to promote cash-flow-based lending and improve credit access to underserved segments of the economy.

Commercial Bank Deputy General Manager – Personal Banking S. Ganeshan said the milestone reflected both the strength of the national credit guarantee framework and the resilience and potential of Sri Lankan entrepreneurs.

He said the bank’s focus extends beyond providing capital to supporting sustainable SME growth through advisory services, capacity building and financial inclusion initiatives.

Commercial Bank has also developed lending products such as its ‘Diribala’ facility, which provides flexible financing for growth-stage enterprises, with repayment structures aligned to business cash flows. The bank has combined such lending with risk-sharing arrangements, including its partnership with NCGIL, to widen access to finance for MSMEs and agri-businesses.

The bank said its broader financial inclusion efforts include agency banking, mobile banking services, financial literacy programmes, entrepreneurship development and specialised agricultural and microfinance facilities.

Commercial Bank is Sri Lanka’s largest private-sector lender and operates more than 270 branches, while maintaining an international presence in Bangladesh and the Maldives, as well as operations in Myanmar and the Dubai International Financial Centre.