Small and medium enterprises (SMEs) generally suffer capacity constraints and lack skills in business development, marketing, planning, human resource management, and other business skills, which makes them less bankable. Had it been done, the capacity development technical assistance would have provided necessary skills training and improved the capacity of borrowing SMEs. Sri Lanka's Credit Information Bureau also covers SMEs. Participating commercial bank (PCBs) reported that they accessed the bureau's credit information report to appraise the SME subloans to be financed under the project. Despite the existence of fairly adequate institutions for SME risk assessment, PCBs emphasized the need for stronger support institutions, including training institutions for SMEs, and reliable funding sources for SMEs.
Small and Medium Enterprise Regional Development Project