Business · Sri Lanka Bureau
Sampath Bank and KOKO partner on new merchant credit facility
Sri Lanka's Sampath Bank has launched a collaborative merchant credit facility with KOKO, expanding access to working capital for small and medium-sized businesses operating in the retail and service sectors.
LSN Sri Lanka ·
The partnership between Sampath Bank and KOKO aims to streamline credit delivery to merchants and traders across the island, providing flexible financing solutions tailored to business needs. The facility is designed to support cash flow management and operational expenses for merchants who may have faced constraints in accessing traditional lending products.
The merchant credit initiative represents a strategic move by Sampath Bank to deepen its presence in the small and medium enterprise segment, a key growth area for Sri Lankan banks seeking to broaden their customer base beyond corporate lending. KOKO's involvement brings technology-enabled payment and financial solutions to the partnership, enhancing accessibility and processing efficiency.
Such merchant financing facilities have gained prominence across South Asia as banks and fintech firms collaborate to serve underbanked business segments. The arrangement allows participating merchants to access credit more rapidly while enabling the financial institutions to manage risk through data-driven assessment mechanisms.
Details regarding interest rates, credit limits, and eligibility criteria for the facility remain to be formally disclosed by both institutions. The launch underscores the evolving landscape of commercial banking in Sri Lanka, where traditional lenders increasingly partner with digital platforms to reach emerging customer segments.