Sri Lanka Launches Secured Transactions Registry to Boost SME Financing Access

Sri Lanka has marked a major milestone in its journey toward inclusive and sustainable economic growth with the launch of the Secured Transactions Registry (STR) — a groundbreaking platform designed to expand credit access for small and medium enterprises (SMEs) by allowing the use of movable assets as collateral.

This pioneering initiative is spearheaded by the Credit Information Bureau (CRIB) in collaboration with the Central Bank of Sri Lanka and the Ministry of Finance, with technical assistance from the International Finance Corporation (IFC), a member of the World Bank Group, and funding support from the European Union (EU) through its regional programme, Accelerating Climate Smart and Inclusive Infrastructure in South Asia (ACSIIS).

Empowering SMEs Through Financial Inclusion

SMEs form the bedrock of Sri Lanka's economy, accounting for over 75% of all businesses and providing nearly 45% of employment nationwide. Despite their vital contribution, many SMEs and micro, small, and medium enterprises (MSMEs) face limited access to credit, largely due to a lack of fixed assets traditionally required by banks as collateral.

The new STR addresses this long-standing barrier by establishing a modern, transparent, and efficient registry where borrowers can use movable assets — such as machinery, inventory, vehicles, accounts receivable, and equipment — as collateral to secure loans.

"Historically, borrowers in Sri Lanka, particularly MSMEs, have faced immense challenges accessing formal credit due to their inability to provide fixed asset collateral," said Chaaminda Bandara, Chairman of the Secured Transaction Registration Authority. "The STR reforms create an enabling environment that unlocks the value of movable assets and establishes a standardized, inclusive financial system."

Transforming the Credit Landscape

The Secured Transactions Registry represents a transformative reform in Sri Lanka's credit ecosystem. It strengthens the country's financial infrastructure by providing a centralized digital platform that allows lenders and borrowers to register, verify, and manage security interests quickly and securely.

Pushpike Jayasundera, Director and General Manager of CRIB, emphasized the importance of this milestone:

"The launch of the STR marks a transformative milestone in Sri Lanka's credit ecosystem. By enabling the use of movable assets as collateral, the STR expands access to finance for SMEs and entrepreneurs who have traditionally been constrained by the lack of immovable assets. This initiative reinforces CRIB's commitment to fostering financial inclusion and strengthening the digital credit infrastructure of the country."

The registry will introduce simplified registration procedures, a user-friendly database, and robust legal safeguards to ensure transparency and protection for both lenders and borrowers. It will also streamline enforcement processes in the event of default, offering a fair and predictable mechanism for collateral recovery.

Global Partnerships Driving Local Change

The STR's development exemplifies the power of multilateral collaboration. Through the technical expertise of IFC and financial backing from the EU, Sri Lanka joins a growing list of nations modernizing their secured transaction systems to support inclusive financial growth.

Gevorg Sargsyan, IFC Country Manager for Sri Lanka and the Maldives, noted the long-term significance of the reform:

"Empowering SMEs is critical for job creation and sustaining economic momentum. A strong credit infrastructure is essential in unlocking the growth potential of these businesses. IFC is proud to have supported every phase of this reform and looks forward to helping increase public awareness and adoption. This initiative will drive lasting progress for generations to come."

Similarly, Johann Hesse, Head of Cooperation at the European Union Delegation to Sri Lanka and the Maldives, highlighted the reform's alignment with the EU's Global Gateway strategy:

"The Secured Transactions Registry is a game-changer for Sri Lanka's financial system. It allows small businesses to use what they already have — from machinery to equipment — to access finance easily and fairly. We are proud to support initiatives that strengthen financial systems, open markets, and empower people to participate more fully in the economy."

Supporting Women and Emerging Entrepreneurs

Globally, the absence of effective secured transaction frameworks has disproportionately affected women entrepreneurs, who often possess movable assets rather than immovable property. By recognizing movable collateral, Sri Lanka's STR creates new avenues for women-led enterprises to obtain financing, expand operations, and invest in innovation.

The registry will also support youth entrepreneurs and self-employed workers, sectors critical for post-pandemic recovery and job creation. Through financial literacy campaigns, training sessions, and outreach programmes, IFC and CRIB will work together to raise awareness among SMEs on how to register their movable assets and secure financing through formal channels.

A Step Toward Resilient and Inclusive Growth

The STR is expected to catalyze greater participation in formal credit markets, deepen financial inclusion, and strengthen Sri Lanka's overall economic resilience. By improving credit flow to SMEs and fostering entrepreneurship, the initiative supports broader national goals of sustainable development, private-sector growth, and poverty reduction.

The registry can be accessed at www.str.lk, offering businesses and financial institutions a transparent, efficient, and secure interface for registering and managing movable collateral.

As Sri Lanka continues to rebuild its economy and embrace digital transformation, the Secured Transactions Registry stands as a symbol of innovation, collaboration, and confidence — paving the way for a more equitable, inclusive, and dynamic financial future.