Interview with Mr. Shrimal Jayathilake, Director of Industrial Estates Division – (IDB)

Bank of Ceylon’s Transformative Role in Industrial Growth: A Strategic Partnership with the IDB to Empower Entrepreneurs in Sri Lanka

Q: Could you provide an overview of the Industrial Development Board (IDB) and its role in fostering industrial growth in Sri Lanka?

The Industrial Development Board (IDB) is the premier state organization responsible for the development and promotion of the industrial sector in Sri Lanka. Established under the Industrial Development Act No. 36 of 1969, the IDB operates as a statutory body under the Ministry of Industry and Entrepreneurship Development.

With a mandate that extends across all districts of Sri Lanka, the IDB is committed to serving the diverse needs of industrialists—ranging from micro, small, and medium enterprises (SMEs) to large-scale industries. It provides comprehensive support, ensuring that businesses of all sizes have access to the necessary facilities, resources, and guidance to thrive in the industrial landscape.

Q: For individuals who have a business plan and aspire to start their own enterprise, with the assistance of BOC how does the IDB provide support and promote such initiatives?

The Industrial Development Board (IDB) plays a crucial role in guiding and supporting entrepreneurs who wish to establish their own businesses. Whether you have a well-structured business plan or a conceptual idea, the IDB offers a range of services to help transform your vision into a successful industrial venture.

To facilitate aspiring industrialists and entrepreneurs, the IDB provides comprehensive assistance, including technical guidance, financial advisory services, and business development support. Recognizing the importance of strategic partnerships, the IDB has established strong collaborations with various institutions, including a significant partnership with the Bank of Ceylon, to offer financial solutions that cater to the needs of industrial start-ups.

For those seeking to connect with the IDB and access its resources, multiple channels of communication are available:

Entrepreneurs can connect with the Industrial Development Board (IDB) through multiple channels. The official website (www.idb.gov.lk) provides comprehensive details on services, initiatives, and policies. Additionally, IDB’s district offices across Sri Lanka offer personalized guidance, while experienced officers are available via telephone to address inquiries and provide professional advice on starting and sustaining an industrial business.

The IDB has embarked on a comprehensive initiative to interconnect with a diverse range of organizations, ensuring that industrialists receive holistic support from multiple sectors. With a strong and structured approach, the IDB continues to facilitate business development, empowering entrepreneurs to contribute meaningfully to Sri Lanka’s industrial growth and economic advancement.

Q: Could you elaborate as to what role does BOC play in supporting the IDB, and how does this partnership contribute to the success of industrialists?

The Industrial Development Board (IDB) and the Bank of Ceylon (BOC) share a strategic partnership aimed at fostering industrial development in Sri Lanka. This collaboration plays a pivotal role in empowering industrialists, particularly in the Small and Medium Enterprise (SME) sector, by providing essential support to facilitate business establishment and growth.

In the journey of industrial development, six fundamental factors play a crucial role in ensuring success: finance, technology, marketing and sales, consistency and sustainability, vision, and a strong mission supported by a well-defined regulatory framework. Each of these elements contributes to building a resilient and thriving industrial sector, providing the necessary foundation for long-term growth and sustainability.

Among these, the IDB serves as a comprehensive resource hub, offering technical expertise, business strategies, market access, and regulatory guidance. However, the most critical factor—financial support—lies beyond its scope. This is where the BOC plays a transformative role in bridging the gap, making financial resources accessible to industrialists.

The key connection between IDB and BOC is established through the SME Circle, a service designed to extend beyond conventional financial assistance. The BOC, as a leading financial institution, provides capital and financial solutions to entrepreneurs, enabling them to initiate and expand their industries. By ensuring that businesses receive the necessary financial backing, BOC paves the way for sustainable industrial growth.

This partnership between IDB and BOC is not merely a financial transaction—it is a collaborative journey toward success. Through a shared commitment to empowering industrialists, the IDB provides the strategic and technical foundation, while BOC removes financial barriers, ensuring that businesses can thrive. Together, these two institutions create a synergistic ecosystem, fostering a resilient and progressive industrial sector in Sri Lanka.

Q: How do you perceive the SME concept of BOC and its impact on industrial development?

Having dedicated 30 years to working alongside the Industrial Development Board (IDB), I have witnessed first-hand the transformative power of the SME concept in shaping Sri Lanka’s industrial landscape. Traditionally, the role of a bank has been to provide financial assistance once an industry approaches it for funding. However, what sets the Bank of Ceylon (BOC) apart is its proactive approach—one that extends far beyond merely granting loans.

The BOC does not wait until an entrepreneur seeks financial support; instead, it takes a holistic and forward-thinking approach by conducting thorough groundwork before the loan is even offered. This involves a meticulous assessment of financial viability, business sustainability, and potential challenges an industrialist may face. The bank walks that extra mile, ensuring that businesses are well-prepared and equipped for long-term success.

One of the most remarkable aspects of this initiative is that the BOC has created an extensive SME network, forming an interconnected ecosystem that supports industrialists at every stage—from initial funding to post-loan financial monitoring. Even after a loan is granted, the bank remains actively involved, tracking the progress of businesses, identifying potential issues, and offering continued guidance. For the IDB, this structured and interwoven support system is an invaluable asset. The SME concept, backed by BOC, has provided a solid foundation for industrialists, ensuring they receive not only financial backing but also strategic and operational support. This collaborative effort has fostered a thriving industrial sector, making it a reassuring and highly effective partnership.

Through this initiative, BOC has set a new benchmark—not just as a financial institution, but as a true partner in industrial progress. This synergistic relationship between IDB, BOC, and SMEs has paved the way for sustainable industrial growth and economic resilience, ensuring that businesses are not just launched but nurtured for long-term success.

Q: The Bank of Ceylon (BOC) has introduced the Youth Loan Concept as a means of supporting young entrepreneurs. In your view, what makes this initiative significant, and how does it contribute to industrial development?

Young individuals possess an inherent sense of awareness and resilience—they recognize when they are being misled and are quick to challenge outdated systems, often initiating revolutions that drive change. At the Industrial Development Board (IDB), we strongly believe that true national development can only be achieved through industrial progress. However, for years, industries lacked the necessary support and visibility, creating a gap that needed an effective solution.

The BOC Youth Loan Concept emerged as a powerful response to this challenge. Yet, what sets this initiative apart is that it is not merely a loan scheme—BOC has gone beyond financing to nurture and develop entrepreneurs. The bank has taken a deliberate approach to ensure that young individuals receiving financial assistance are not just borrowers but future industry leaders. Through this initiative, BOC is creating a new generation of entrepreneurs, some of whom have already reached exporting standards, while others have achieved remarkable success in their respective fields. The Youth Loan Concept was introduced at a critical moment, addressing the urgent need to empower young innovators, industrialists, and business visionaries. By providing not just financial backing but also strategic support and mentorship, BOC has played a vital role in ensuring that these young entrepreneurs do not merely start businesses but build sustainable and thriving industries.

Q: As the Director of the Industrial Development Board (IDB), what advice would you gives to aspiring entrepreneurs who are planning to start their own business?

Starting a business should never be driven by impulse or short-term financial aspirations; rather, it must be guided by a clear vision and a well-defined industrial strategy. A truly successful business is more than a mere commercial venture—it is an institution that fosters economic growth, generates employment opportunities, and drives industrial innovation. Before embarking on an entrepreneurial journey, it is essential to conduct thorough research and develop a structured business plan that serves as a strong foundation for sustainability. A deep understanding of market dynamics is equally crucial, enabling entrepreneurs to navigate competitive landscapes effectively. Additionally, comprehensive knowledge of legal and regulatory frameworks is imperative to ensure compliance and mitigate potential risks. Mastery of the technological aspects relevant to the industry is also essential, as it enhances operational efficiency and fosters long-term growth. By integrating these critical elements, aspiring business owners can establish enterprises that are not only resilient but also poised for enduring success.

Unlike agriculture, which can sometimes be undertaken with minimal prior knowledge, business and industry demand extensive preparation. Entrepreneurs must conduct meticulous research, develop a sustainable operational model, and align their business strategies with market needs. My advice to young entrepreneurs is simple—never embarks on a business journey without a well-defined methodology and mechanism. Proper planning prevents setbacks, reduces risk, and ensures a structured path toward growth and success.

Q: In your opinion, how does the Bank of Ceylon’s (BOC) current approach to financial services extends beyond traditional banking to support industrialists?

Traditionally, a bank’s primary role has been to grant loans and collect repayments. However, in today’s economic landscape, this conventional model is no longer sufficient. A financial institution must do more than just provide capital—it must empower borrowers, transforming them into strong and self-sufficient entrepreneurs.

Through its SME Circle, BOC has introduced an innovative framework designed to support industrialists beyond financial transactions. This initiative focuses on nurturing businesses, guiding entrepreneurs, and ensuring long-term sustainability. The bank acts as a reliable partner, assisting business owners at crucial moments of need by offering advisory services, financial literacy, and strategic interventions.

BOC understands that a strong industrialist creates a stable business ecosystem, and in turn, a resilient national economy. By providing financial strength to entrepreneurs, the bank fortifies its own stability, ensuring that both industrialists and the economy grow in unison. The BOC Youth Loan Concept, in particular, exemplifies this philosophy—it is not just a loan but a foundational support system for young entrepreneurs. This initiative serves as a bridge between ambition and achievement, enabling young business owners to transform their dreams into reality.