SME Creditworthiness Rating Framework has been launched by CA Sri Lanka as part of a broad initiative to improve access to finance, strengthen governance and accelerate the growth of Sri Lanka’s small and medium-sized enterprise (SME) sector.
SME Creditworthiness Rating Framework strengthens finance access for Sri Lankan SMEs
The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), together with the Colombo Stock Exchange (CSE), unveiled a multi-pronged SME development initiative on 6 July, introducing the SME Creditworthiness Rating Framework, the SME Connect Awards, the inaugural edition of The Entrepreneur magazine, and the new SME Connect brand identity.
The new framework was developed following a formal request from the Department of Development Finance of the Ministry of Finance in December 2024, which sought a standardised and scalable credit assessment model specifically designed for Sri Lankan SMEs.
The SME Creditworthiness Rating Framework comprises two key components. The first is a structured Creditworthiness Rating System that evaluates SMEs based on financial performance, governance standards and operational indicators, creating consistent credit profiles that financial institutions and investors can rely on. The second component is a set of Application Guidelines outlining eligibility requirements, documentation standards and the assessment process.
Together, these elements are intended to provide lenders with a more consistent risk assessment methodology while helping SMEs better understand and improve their financial standing. The framework has been designed to support businesses of different sizes, from micro-enterprises to high-growth start-ups, making it scalable across the wider SME ecosystem.
Speaking at the launch, CA Sri Lanka President Tishan Subasinghe said the country’s SME sector remains the backbone of the economy but continues to face significant barriers in accessing finance.
He noted that the newly launched initiatives are intended to transform the future of Sri Lanka’s SME landscape by enabling businesses to strengthen their financial credentials, improve access to capital, enhance investor confidence and develop the governance standards necessary to grow into publicly listed companies.
Alongside the framework, CA Sri Lanka also introduced the SME Connect Awards, which will recognise enterprises demonstrating excellence in governance, financial discipline, resilience and sustainable business growth. The awards are expected to encourage higher standards of accountability and professionalism across the SME sector while showcasing successful businesses as role models for other entrepreneurs.
SME Connect Committee Vice President and Chairperson Anoji de Silva said the committee was established to bridge the gap between the accounting profession and Sri Lanka’s SME community by addressing long-standing financing challenges while creating new opportunities for business expansion.
She explained that the initiative establishes a structured pathway to improve credit accessibility while helping promising SMEs strengthen their financial credibility, scale sustainably and compete more effectively in regional and international markets.
As part of the broader initiative, CA Sri Lanka will conduct a series of capacity-building workshops in the coming months. These programmes will provide practical guidance on financial management, credit applications, investor readiness and the effective use of the SME Creditworthiness Rating Framework, helping businesses improve their preparedness when seeking financing.
The Institute also launched the inaugural edition of The Entrepreneur magazine, which aims to complement the technical initiatives by highlighting real entrepreneurial journeys, sharing business insights and strengthening engagement with Sri Lanka’s SME community.
The launch event, held at CA Sri Lanka’s headquarters in Colombo, was attended by President Tishan Subasinghe, CEO Lakmali Priyangika, SME Connect Committee members, and Colombo Stock Exchange CEO Rajeeva Bandaranaike, reflecting the collaborative effort to strengthen the country’s entrepreneurial ecosystem.
With improved financial assessment tools, industry recognition, knowledge-sharing platforms and business development programmes, CA Sri Lanka aims to empower SMEs to become more financially resilient, investment-ready and competitive. The SME Creditworthiness Rating Framework is expected to play a key role in supporting this transformation by creating greater confidence among lenders and investors while helping businesses unlock sustainable long-term growth.