Sri Lanka's Central Bank Chief Calls for Stronger Credit Information Systems

COLOMBO (News 1st); Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), emphasized the critical role of credit information in improving access to finance, particularly for underserved sectors of the economy.

Speaking at the launch of the National Credit Guarantee Institution Limited (NCGIL), Dr. Weerasinghe addressed the challenges faced by businesses in securing credit, noting that banks are often constrained by risk considerations.

“Banks are lending other people’s money, so they must manage risk carefully. When they identify high-risk customers, they naturally become more cautious,” he explained.

He pointed out that one of the key barriers to credit access in Sri Lanka is the lack of comprehensive information on borrowers’ creditworthiness.

“In countries with more developed financial systems, credit information bureaus and other institutions provide rich data that help lenders assess risk more accurately. This enables them to offer credit even without collateral,” he said.

Dr. Weerasinghe stressed the need to strengthen Sri Lanka’s credit information infrastructure, highlighting the role of the Credit Information Bureau of Sri Lanka (CRIB). “We must emphasize the importance of creditworthiness data. It’s a vital tool that can empower financial institutions to extend credit more confidently and inclusively,” he added.Sri Lanka launched  the National Credit Guarantee Institution Limited (NCGIL) on Monday (2) in Colombo.

The initiative is aimed at enabling micro, small, and medium enterprises (MSMEs) to access finance without the need for collateral.

NCGIL was established through a Public-Private Partnership (PPP) between the Government of Sri Lanka and 13 stakeholder financial institutions, with the strategic and financial backing of the ADB, which provided an initial loan of USD 50 million to support its establishment.