Sri Lanka’s leading private sector bank HNB PLC was selected as a partner financial institution by the
Asian Development Bank (ADB) to disburse a component of the US$ 13.5 million in funds allocated
to the SME-Line of Credit (SMELoC) Emergency Response Scheme.
The ADB scheme aims to support and strengthen Sri Lankan MSMEs affected by the ongoing
economic crisis with working capital credit facilities, with a special emphasis on agriculture, tourism
and export sectors.
In working towards this goal, HNB looks to disburse funds to select businesses across its extensive
“We are delighted to be a part of this powerful initiative from the ADB. Given the unique strength
and scale of HNB’s network of SME clients across the island, and our long-standing relationship with
ADB, we believe that HNB is uniquely positioned to help uplift this sector, which even through our
current challenges, continues to serve as the backbone of the Sri Lankan economy. We urge all
eligible SME clients that are facing challenges in their working capital requirements to make use of
this invaluable opportunity,” HNB Head of Refinance and Special Lending Products, Bandara
SMEs that meet the eligibility criteria of a Rs. 750 million annual turnover will be offered a maximum
facility of Rs. 10 million, with a repayment period of three years. All loans under the scheme must be
utilised exclusively for working capital requirements, including recurring expenses such as salaries,
overheads and raw material purchasing. Moreover, HNB will provide the attractive interest rates of
11.77% for the facility, significantly lower than the current market rates.
Notably, the bank has supported over 650 MSME customers with working capital and Capex
facilities accounting for over Rs. 6.5 Bn through the ADB – SME LoC schemes. Established to
support businesses affected by the COVID—19 pandemic, the Emergency Response Scheme initially
disbursed USD 10 million to 280 local businesses as emergency working capital loans over the past
Furthermore, HNB disbursed loans to the value of Rs. 600 million for approximately 132 women
entrepreneurs with a grant of Rs. 100 million under the SME LoC – Wefi component.
With 254 customer centres across the country, HNB is one of Sri Lanka’s largest, most
technologically-innovative banks, having won local and global recognition for its efforts to drive
forward a new paradigm in digital banking. HNB has a national rating of AA- (lka) by Fitch Ratings
(Lanka) Ltd. The bank was also ranked among the World Top 1,000 Banks list compiled by the
prestigious UK-based Banker Magazine for six consecutive years, and was also ranked as Sri Lanka’s
Best Retail Bank for the 12th year at the prestigious International Excellence in Retail Financial
Services Awards 2022 hosted by the Asian Banker Magazine.