BOC sets up unit to assit SMEs

by Anjana Samarasinghe

The Bank of Ceylon (BOC) has set up a Small and Medium Enterprises (SMEs) unit to assist SMEs. The Bank has established two units in their head office and in Kandy, and it is now in a process of establishing SME units in Jaffna, Hambantota and Trincomalee.

Deputy General Manager branches and development banking of BOC B.A.C Fernando said that SMEs have become the back bone of the country's economy and they contribute nearly 50% for the GDP. In the plantation sector tea smallholders contribute 65% for the total tea production. Nearly 70% of the transportation is handled by the small scale entrepreneurs.

'Most of the SMEs face difficulties due to lack of funds and unorganised administrations. Our main objective is to assist these entrepreneurs and develop SME sector to enhance country's economy', he said.

Bank has associated with business chambers all around the country to identify entrepreneurs who need assistance to develop their businesses. In rural areas branch officers will promote the unit among SMEs in rural areas.

BOC also hopes to enter into a MOU with a Japanese funding agency to provide loans for SMEs for low interest rates.

Senior Manager of SME unit M.F.M. Nilam said that the unit will assist SMEs by providing sufficient loans,latest technology and market details. The Unit has categorised SMEs under three sections agriculture, industrial and services.