The approval of the Cabinet of Ministers has been obtained to establish NCGI with the intention of supporting the Small and Medium Enterprise (SME) sector in the country by assisting SMEs in overcoming obstacles faced by an inability to adapt to rapidly changing market demands, changing technology, and limitations in capacity due to a low level of financial inclusion, limited access to finance and especially a lack of acceptable collateral.
Accordingly, the National Credit Guarantee Institution (NCGI) has been established as a public limited company under No. P B 00271461, and initial Board of Directors (BoD) members have been appointed to represent the Government of Sri Lanka. Consequently, the signing ceremony of the Shareholder Agreement (SHA) was held on July 5, 2023 at the Randora Auditorium of the Ministry of Finance allowing the chosen 13 Participatory Financial Institutions to be the founding members of the NCGI and proceed the share issuance. Mr. R M P Rathnayake, Deputy Secretary to the Treasury is the signatory for the Government’s side.