ECONOMYNEXT – The US Agency for International Development said it had begun a financing small and medium food related suppliers to Sri Lanka’s supermarket chain through credit channelled through Hatton National Bank.
“Sri Lankan enterprises face increasing pressures due to recent global supply chain disruptions, high energy costs, volatile inflation rates, and economic instability,” Gabriel Grau, the USAID/Sri Lanka and Maldives Mission Director.
“This supply chain financing facility alleviates some of the pressures and enables MSMEs to optimize their working capital.”
The 4 million dollar credit facility has so far loaned 430,000 dollars to eight suppliers in the past two months, a USAID statement said.
“Partnering with USAID and HNB on supply chain financing is a significant step to ensure MSMEs have access to capital during the ongoing crisis,” Charitha Subasinghe, of John Keells Holdings said.
“This facility supports our goal of creating shared value for our stakeholders, supporting the local economy, and ensuring uninterrupted product availability for our customers.”
The partnership plans to support approximately 100 MSMEs to obtain USD 4 million worth of credit over six months.
“This will enable MSMEs to meet their working capital needs, such as purchasing raw materials, paying salaries, and covering other short-term expenses, so businesses continue running smoothly,” Sanjay Wijemanne, HNB’s Deputy General Manager for SME & Retail Banking said.
(Colombo/Dec29/2022)