Regulatory Alerts2021-04-21 | Monetary Law Act Order No. 1 of 2021Priority Sector Lending Targets for Licensed Commercial and Specialised Banks to the MSME Sector
The Central Bank of Sri Lanka mandates licensed commercial and specialised banks to achieve a minimum 20 percent year-on-year growth rate in lending to the Micro, Small and Medium Enterprises sector. The order prioritizes high-potential sub-sectors such as food processing, medical utilities, and tourism while defining eligible enterprises by an annual turnover not exceeding Rs. 1,000 million and excluding pawning advances. Licensed banks must implement continuous monitoring mechanisms and submit quarterly lending reports to the Director of Economic Research and Bank Supervision commencing April 2021.
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