‘NE development will provide growth impetus’

Sanjeevi JAYASURIYA in Jaffna

The fast track development taking place in the North and the East will provide an impetus for growth and prosperity. The financial inclusion is key for sustainable development and the presence of a large number of such institutions augurs well for upward movement in the business and commerce spheres, Central Bank Governor Ajith Nivard Cabraal said.

With the aim to provide more financial services and widen the reach, Commercial Leasing and Finance Company opened its 50th branch in Kilinochchi on Wednesday where the Central Bank Governor was the Chief Guest.

The well planned strategies and execution has ensured positive impact of the development drive. As there are nine banks and several financial institutions in Kilinochchi, the business momentum and hype of activities is evident. The area underwent amazing transformation in the past 18 months, he said.

Measures are needed to ensure that the development is continued in fast pace. The upgrading of livelihood and opportunities for financial services to infuse business growth are important. This could be achieved through the availability of different financial institutions where people could benefit, he said.

The financial institutions could make a huge difference in the life of customers as the loans provided to them could enable them to reach the next level. Finances are changing shape and it should be fashioned to supplement people’s efforts. Lending could make the growth faster.

The Northern Province recorded 22 percent growth and it has become a significant partner of national growth. We need to encourage banks and financial institutions to get more involved in business and commerce for easy access for finance to improve people’s lives.

There are major changes in the economic landscape and this should create more entrepreneurs and make them partners of development process. The country is well positioned to reach accelerated economic growth and contribution by the financial sector is a critical factor in this regard, Cabraal said.

The 50th branch opening of the Commercial Leasing and Finance Company (CLC) makes it four branches in the North. The branch expansion of the company will benefit the farming and business community with new opportunities for growth, LOLC Group Managing Director Kapila Jayawardena said.

The company moved in to a new path and expanded business widely during the past four years and is well poised to record a profit of Rs 5 billion this year. Its lending portfolio has grown tremendously where 27 percent growth is accounted by the North and the East provinces, he said.

The CLC has disbursed Rs 5 billion for the eight branches in the North and the East and sees huge business potential in lending in these provinces. The company has one of the highest lending portfolios for the two provinces at present where it operates in the core business areas of savings, lending, hire purchase and commercial factoring.

We have taken initiatives to focus more on the SME sector and are strong in micro lending in line with the government’s vision. This has played a pivotal role in going forward. As a fully fledged financial institution, CLC is in the forefront of the country’s financial industry, Jayawardena said.