CBSL, CRIB launch Secured Transactions Register to boost MSME credit access

CBSL Governor hails STR as structural reform that supports financial inclusion, innovation, and growth of productive enterprises Movable property, including machinery, crops, livestock, receivables, and even intellectual property, will be deemed valid collateral for loans IFC says reform reflects global best practice and is aligned with Sri Lanka's National Financial Inclusion Strategy Sri Lanka urged to centralise more digital records like mobile registries, company data, and credit histories to get more out of system

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CENTRAL Bank of Sri Lanka and the Credit Information Bureau (CRIB) yesterday launched the Secured Transactions Register (STR), introducing a new legal and digital framework that allows movable assets to be used as collateral for loans, especially for micro, small and medium enterprises (MSMEs).

The event, held at the Shangri-La Hotel in Colombo, also marked the official commencement of operations of the Secured Transactions Registration Authority (STRA), established under the Secured Transactions Act No. 17 of 2024.

The International Finance Corporation (IFC), a member of the World Bank Group, provided technical assistance and the European Union's regional initiative 'Accelerating Climate Smart and Inclusive Infrastructure in South Asia' (ACSIIS) provided the funding.

CBSL Governor Dr. Nandalal Weerasinghe, the Chief Guest at the event, said the initiative is a vital step in improving access to finance for MSMEs, which often lack traditional collateral such as land or buildings.

“Movable assets such as machinery, equipment, vehicles, and receivables represent almost 78% of business capital in developing economies, yet remain underutilised in Sri Lanka,” he said.

“This register creates a transparent market for lenders to recognise the value of these assets and provides confidence for banks to lend to smaller businesses,” he added.

Dr. Weerasinghe described the reform as part of the broader effort to modernise Sri Lanka’s financial system and strengthen inclusion.

He credited the Finance Ministry and the World Bank’s International Finance Corporation (IFC) for their role in shaping the reform and establishing the STRA. “This is not just a technical change,” he said. “It is a structural reform that supports financial inclusion, innovation, and the growth of productive enterprises.”