Hatton National Bank

HNB has been the forerunner in development banking among the private sector banks in Sri Lanka . The bank commenced its development banking activities almost from the inception by inaugurating a village adoption project in Moneragala.
In late 1970s the bank established the Development Division with a vision to be the foremost development banking unit among commercial banks positively contributing towards the economic development of the nation by providing credit and other social banking services.

This division mainly caters to SME, agriculture and micro financing sectors. HNB was the 1st commercial bank in Sri Lanka to recruit qualified technical and agricultural personnel to the banking stream to assist the SME, rural agricultural enterprises and micro finance sectors.
Bank has been an active 'Participating Credit Institution' for almost all credit lines funded by the Asian Development Bank, World Bank, International Fund for Agricultural Development, Japanese Bank for International Cooperation as well as concessionary credit lines introduced by the Government of Sri Lanka from time to time.

In 1989 the bank introduced its own micro financing program known as 'Gami Pubuduwa' (village awakening) to extend financial services to self employment projects and other micro enterprises sector in the rural and semi-rural areas. The primary objective of this scheme is to establish a closer linkage between the Bank and the rural community who were treated as 'Non Bankable'. This scheme emphasizes harnessing inherent skills of the rural community, thereby assisting them to become self-reliant.

HNB now offers two popular funding programmes sponsored by the Government, namely SMILE and E-FRIENDS loan schemes. The SMILE and E-FRIENDS schemes provide concessionary loans that would propel the development of Sri Lanka's SMEs and ensure environmental friendly methods for industrial development, while simultaneously contributing to the overall progress of the country.

SMILE-I Revolving (Small & Micro Industries Leader & Entrepreneur Promotion Project I-Revolving ) provides small and medium-scale industries the financial backing to upgrade their enterprises - from start-up to business/factory expansion to purchase of equipment or working capital infusion. A maximum of Rs5million (as a long term loan) for such investments could be obtained at an exceptionally reasonable interest rate of 14% per annum, with the added advantage of the Bank's unrivalled ground experience

E-FRIENDS-2 is a fund set up to provide long-term low-cost loans to industrial firms looking to develop in an environment friendly manner. As expenses due to resource and energy wastage, new and stringent government clamp downs and loss of business deals from environment-conscious customers are eccentrically on the increase, acquiring assistance to ensure waste minimization, pollution control and resource recovery/savings within your organization maybe a timely and appropriate step for many enterprises. HNB now provides concessionary loans up to Rs50million at an interest rate of 6.5% per annum, for those seeking to purchase equipment for end-of-pipe treatment and other equipment that will lead to reduce harmful emissions and lower waste production, obtain facilities that would save/reduce consumption of energy and/or save/reduce usage and resources that produce energy, to purchase equipment that would substantially improve the safety of work places, especially with regard to the exposure of workers to potentially hazardous substances/ noise etc. The loan also covers investments related to attaining equipment for the monitoring of pollutants in relation to the above and the relocation of highly polluting industries to special estates.

The Bank also offers a Technical Assistance Loan that enables one to cover the cost of the consultancy and technical services directly related to the investigation of measures to control pollution, ensure waste minimization etc. The loan also covers consultancy services associated with resources recovery/savings and pollution control/abatement as well as the design, supervision, installation and commissioning of equipment financed by e-friends 2. Enterprises are entitled to a maximum of Rs750000/- (no interest will be charged) with a reimbursement of up to 75% of the cost of consultancy.

Contact person -
M V P Gunawardena ( Manager - Development Banking )
Development Banking Division,
Level 19, HNB Towers,
Hatton National Bank PLC,
479, T B Jayah Mawatha,
Colombo 10,
Sri Lanka .