The Central Financial institution of Sri Lanka (CBSL), in partnership with the Credit score Info Bureau of Sri Lanka (CRIB), has formally launched the Secured Transactions Registry (STR)—a landmark initiative designed to rework credit score accessibility for micro, small, and medium enterprises (MSMEs).
The STR, developed underneath the Secured Transactions Act No. 17 of 2024, will likely be administered by the newly established Secured Transactions Registration Authority (STRA). This digital platform permits lenders to register safety pursuits in movable and intangible belongings resembling equipment, stock, crops, and mental property—belongings historically excluded from collateral-based lending.
Talking on the launch, CBSL Governor Dr. Nandalal Weerasinghe underscored the importance of the initiative in addressing long-standing obstacles to MSME financing:
“Greater than half of MSMEs in Sri Lanka and different rising markets wrestle to entry credit score, primarily as a result of lack of acceptable collateral. Most of their helpful belongings are movable—equipment, tools, commerce receivables—but monetary establishments choose immovable property like land and actual property. This registry modifications that dynamic by making a authorized and institutional framework for movable asset financing.”
Dr. Weerasinghe highlighted that 78% of the capital inventory of SMEs globally contains movable belongings, whereas solely 22% is tied to immovable property. Nevertheless, banks have traditionally been reluctant to just accept movable belongings as a result of absence of a public registry, insufficient authorized provisions, and restricted experience in asset-based financing.
The STR goals to shut these gaps by:
Offering a centralized, clear registry for movable belongings.
Decreasing dangers of double collateralization.
Streamlining enforcement procedures in instances of default.
“This technique will make credit score markets extra environment friendly,” Dr. Weerasinghe added. “It permits companies to unlock the worth of their belongings, whereas giving collectors predictable rights in case of default. Finally, this may improve monetary inclusion, entrepreneurship, and credit-to-GDP ratios in Sri Lanka.”
(newsfirst.lk)
(This story, initially printed by newsfirst.lk has not been edited by SLM workers)
