Seventy Years of Partnership, Purpose, and Progress with Sri Lanka’s MSMEs- a conversation with Pradeep De Alwis, Vice President – Head of Business Banking and Branch Banking

They move the country forward – slowly, steadily – one field at a time, one loom, one kitchen, one garage. The micro, small and medium enterprises (MSMEs) of Sri Lanka are not merely business entities. They are acts of resilience. And for seventy years, DFCC Bank has stood beside them, not from the sidelines, but as a partner and a believer in their growth.

As we commemorate MSME Day 2025, we reflect not simply on the scale of these enterprises but on the quiet strength they embody. The strength to persevere, to create employment, and to courageously build futures – often in places where significant capital seldom ventures. This year’s CMA Sri Lanka Business Excellence Awards affirms that reality. Several MSMEs nurtured by DFCC Bank have been recognised for their innovation, sustainability, and community impact. Their success is not isolated – it is part of a broader, collective narrative that the Bank is proud to have supported.

A Foundational Mission: Development for All

Founded in 1955 as Sri Lanka’s first development finance institution, DFCC Bank has spent seven decades shaping the country’s entrepreneurial landscape, offering not only financial assistance but also mentorship, proximity, and belief.

In 1975, DFCC Bank secured a line of credit from the World Bank’s International Development Association to support small and medium-scale industries. By 1978, the Bank had established a dedicated SME unit, a visionary step that laid the foundation for its long-standing commitment to the sector.

A decade later, in 1988, DFCC Bank advanced further, establishing a professional SME team specifically for outstation clients. New branches were opened in key provincial towns, staffed by officers trained not only in finance but in the art of relationship-building. These officers were mentors and trusted advisors. Many of those early relationships continue to this day, a testament to the Bank’s enduring ethos.

“We have always believed that financial services must be tools of transformation,” says Pradeep Alwis, Vice President – Head of Business Banking and Branch Banking. “For MSMEs, this means more than access to credit. It means knowledge, networks, and continuity. It means being seen, heard, and valued for their contribution to the country’s economic growth.”

Today, DFCC Bank’s MSME portfolio spans regions, sectors, and generations, delivering not just capital but also trusted alliances along the way.

Expanding Ecosystems: From Local Roots to National Reach

In its pursuit of inclusive economic growth, DFCC Bank continues to foster partnerships that broaden reach and deepen impact. A key example is the Bank’s collaboration with USAID and the U.S. Development Finance Corporation (DFC), which focuses on extending finance to underserved MSMEs, particularly women and youth-led enterprises in rural and semi-urban areas.

Through this partnership, DFCC Bank is scaling initiatives like its Aloka Women’s Banking proposition, rolling out digital tools, and strengthening market linkages. The effort reflects the Bank’s conviction that true grassroots transformation requires both institutional strength and cultural understanding—a combination it has long embodied.

Building Knowledge: Vyapara Hamuwa and Beyond

Recognising that financial support must be matched by learning, DFCC Bank launched Vyapara Hamuwa in 2023—a mobile, community-based business development programme. First introduced in Morawaka, it has since expanded across provinces, offering practical guidance on business strategy, peer networking, mentoring, and soft skills.

By moving learning out of boardrooms and into communities, DFCC Bank is helping to instil an entrepreneurial mindset rooted in confidence, clarity, and community trust.

Strengthening Sectors: Driving Growth Across the Real Economy

In rural Sri Lanka, sector-specific MSMEs form the backbone of local economies. DFCC Bank has responded with programmes tailored to priority industries such as tea, dairy, and renewable energy.

In Balangoda, the Bank conducted financial literacy training for 28 estate managers, who now support hundreds of tea smallholders. Under the USDA-backed MOD programme, it deployed a Rs. 500 million facility benefiting over 2,500 dairy farmers. In 2025, DFCC Bank secured a USD 12 million funding line from Symbiotics to promote renewable energy adoption among SMEs, making a direct contribution to Sri Lanka’s national green energy goals.

Rooted in the Real: The Power of the Value Chain

DFCC Bank’s value chain approach ensures that no actor is overlooked. From tea pluckers and dairy producers to fishing communities and agri-processors, the Bank embeds itself into the entire ecosystem, not just its upper tiers

Its MSME officers, specially trained and deeply rooted in local realities, offer tailored advisory, financial literacy programmes, and practical lending solutions.

“Progress can’t be prescribed from a distance,” says Alwis. “It takes root in local realities — in places where a loan is more than capital; it’s a lifeline.”

Financing the Land: Krushibala and Agricultural Empowerment

Agriculture remains at the heart of rural Sri Lanka, yet it is often underserved by traditional financial institutions. DFCC Bank’s Krushibala loan scheme addresses this gap, offering concessional interest rates, flexible repayment periods, and capital to modernise.

From solar-powered irrigation to cold storage and post-harvest value addition, Krushibala enables agri-entrepreneurs to build sustainable, self-reliant enterprises.

“Agriculture is not just a sector — it’s the soul of our economy,” says Alwis. “When farmers rise, a nation moves with them.”

High Touch, High Trust: Officers on the Ground

While digital transformation advances, DFCC Bank’s relationship-driven model continues to define its success. With over 50 dedicated MSME officers deployed nationwide, the Bank meets clients face-to-face, on their terms, in their language.

These officers assist entrepreneurs in navigating funding assessments, documentation, business strategy, and accessing sector-specific support. In a world often dominated by scale, DFCC Bank’s strength lies in its ability to stay personal.

Bridging Gaps in Crisis: Refinance for Recovery

Sri Lanka’s MSMEs have endured years of disruption, from economic instability to global shocks. In response, DFCC Bank’s refinance loan schemes, backed by multilateral partners and government support, have served as a stabilising force.

With low-cost credit and flexible repayment, these schemes have helped MSMEs recover, reinvest, and reimagine their futures. Crucially, the Bank has ensured inclusive access, prioritising support for women-led, youth-driven, and rural enterprises.

“We do not see crisis as a time to retreat,” Alwis reflects. “We see it as a time to stand closer.”

Recognition Woven with Responsibility

This year’s CMA Sri Lanka Business Excellence Awards carry particular meaning. Among the honourees are MSMEs supported by DFCC Bank – businesses built not on privilege, but on persistence.

Their achievements are more than accolades. They represent a quiet revolution in progress – powered by belief, grounded in inclusion, and enabled by a bank that, for seventy years, has chosen to stand beside the entrepreneurs who shaped Sri Lanka’s future.

DFCC Bank celebrates these milestones not as vanity, but as validation – that when inclusive finance meets enduring partnership, remarkable things truly happen.

About DFCC Bank

DFCC Bank PLC, established in 1955 and listed on the Colombo Stock Exchange since 1956, is one of Sri Lanka’s leading financial institutions. Regulated by the Central Bank of Sri Lanka and rated A (lka) by Fitch Ratings, the Bank offers a comprehensive portfolio of retail, corporate, and SME banking services, along with treasury, investment, and trade finance solutions.

With customer centricity and sustainable innovation at its core, DFCC Bank delivers seamless and secure banking experiences, which include digital platforms like DFCC MySpace, and through a network of 138 branches and access to over 5,500 ATMs via the LankaPay network.

A recognised leader in sustainable finance and renewable energy initiatives, DFCC Bank is committed to reducing environmental impact and fostering long-term economic resilience.