STR Launch Unlocks Credit for Sri Lankan SMEs 📈

• Sri Lanka has launched the Secured Transactions Registry (STR), a significant reform aimed at enabling greater credit access for SMEs, MSMEs, and entrepreneurs. • Core Mechanism: The STR allows businesses to secure loans using movable collateral (such as machinery, inventory, and equipment) instead of relying solely on fixed, immovable assets which many SMEs lack. • National Context: This initiative addresses a key barrier for SMEs, which form over 75% of all businesses and provide 45% of jobs in Sri Lanka, reinforcing the backbone of the national economy. • Key Partners: The STR is a collaborative effort led by the Credit Information Bureau (CRIB), in partnership with the Central Bank of Sri Lanka and the Ministry of Finance, with technical assistance from the International Finance Corporation (IFC) and funding from the European Union. • The new registry introduces simple rules, an efficient digital filing system, and robust legal protections, marking a transformative step toward greater financial inclusion and economic growth.