Abstract:
Business Development Loans and advances in Lankaputhra*Development Bank aims at
country's economic growth depict clear-cut differences between a government
development bank and a normal commercial bank as Loan scheme designed to assist
new and existing businesses at concessionary rates and terms that support the economic
growth of the country. Since Sri Lanka economy has been growing, the question arises
whether this trend is applicable in the context of LDB's SME's growth with given loans.
The study mainly aims at evaluating the LDB's loans on SME's organizational sales
growth (OSG) in Sri Lanka. The key findings of this study shows as follows. The study
based on the primary data gathered through a questionnaire survey along with the
personal interview from a sample of 380 client respondents who represented l0% of
the entire population of LDB's SME loan acquired clients in Sri Lanka and descriptive
methods has been adapted to analyze the data.
Findings of the study has been given in that current distribution of credit can be
identified as highest rank with respect to manufacturing (MAL) and agriculture and
fisheries (AFL) and moderate level of distribution can be seen with respect to tourism
(TOL) while other sectors such as traders (TRL), construction (COL), financial and
business services (FBL) and other services (OSL) are identified as lower distribution
by Lankaputhra development bank in Sri Lanka. Moreover, impact of loans and
advances on SME's business performance is identified strongly. Further, it concludes
that TOL is the most critical sector impacted toward higher growth. Finally, this study
recommends that more credit distribution has to be allocated for highly impacting
sector
