Annual Report 2010 - Ministry of Finance and Planning
Annual Report 2010 - Ministry of Finance and Planning
Annual Report 2010 - Ministry of Finance and Planning
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<strong>Ministry</strong> <strong>of</strong> <strong>Finance</strong> <strong>and</strong> <strong>Planning</strong> Sri Lanka > <strong>Annual</strong> <strong>Report</strong> <strong>2010</strong>to reduce the risk <strong>of</strong> lending to SMEs.Policy <strong>and</strong> capacity enhancementfor SME banking comprises capacityenhancement to support SMEs <strong>and</strong>SME banking, support to strengthenthe enabling environment for SMEbanking <strong>and</strong> implementation support<strong>and</strong> monitoring.Small <strong>and</strong> MediumEnterprise RegionalDevelopment Project(SMERDP)The Loan Agreement for theimplementation <strong>of</strong> the Small<strong>and</strong> Medium Enterprise RegionalDevelopment Project (SMERDP),at a total value <strong>of</strong> USD 50 millionwas signed on 18th December 2007,between the Government <strong>and</strong> ADB.This project is aimed at acceleratingthe development <strong>of</strong> SMEs outside theWestern Province by improving theiraccess to credit, business developmentservices, <strong>and</strong> by catalyzing thedevelopment <strong>of</strong> SME value chainclusters for providing linkages toinformation, technology <strong>and</strong> markets.The total cost <strong>of</strong> the project isestimated at USD 88.89 million <strong>of</strong>which 56.25 percent is provided byUSDChart 6.1 > Utilization <strong>of</strong> Funds by Bank out <strong>of</strong> TotalAllocation up to end <strong>of</strong> 31st December <strong>2010</strong>1614121086420ADB <strong>and</strong> 18.75 percent <strong>and</strong> 25 percentare contributed by Private CommercialBanks (PCBs) <strong>and</strong> SMEs respectively.The ADB loan facility is re-lent by theGovernment to the Private CommercialBanks namely; DFCC Bank, CommercialBank, Sampath Bank <strong>and</strong> NationalDevelopment Bank Ltd. The PCBs willon-lend funds as sub-loans to eligibleSMEs <strong>and</strong> SME value clusters. At theinitial stage, the project speciallyfocused on providing medium to longSampath Commercial DFCC NDBBankAllocation (Mn.)Released (Mn.)term credit facility to start-up newSMEs or expansion or modernization <strong>of</strong>existing SMEs which are in a SME valuechain cluster. The project is scheduledto be completed by 30th June 2011.The details <strong>of</strong> the provision <strong>of</strong> mediumto long term credit facility by banksare given in Table 6.1 <strong>and</strong> Chart 6.1.Progress for the Year <strong>2010</strong>A total <strong>of</strong> USD 27 million <strong>of</strong> ADB fundshas been released by all four banksTable 6.1 > Utilization <strong>of</strong> ADB Funds by Bank Out <strong>of</strong> Total Allocation up to end <strong>of</strong> 31st December <strong>2010</strong>ADB FundsBankCommitments to beAllocation (Mn) Released (Mn)Total (Mn)released (Mn)USD Rs. USD Rs. USD Rs. USD Rs.%Sampath 10 1,070 4.07 455.17 3.37 377.50 7.44 832.67 77.82Commercial 15 1,605 7.42 831.19 5.22 585.00 12.64 1,416.19 84.27DFCC 15 1,605 9.94 1,119.95 3.16 354.00 13.10 1,473.95 87.33NDB 10 1,070 5.18 580.33 2.85 318.37 8.03 898.70 80.30Total 50 5,350 26.61 2,986.64 14.60 1,634.87 41.21 4,621.51 82.42Source: DFCC, NDB, Commercial Bank, Sampath Bank291
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