A Financial Lifeline for Small Businesses: Launch of the SME Business Credit Card

An important part of Sri Lanka's economy is made up of Small and Medium-sized Enterprises (SMEs). They boost local communities, support families, and generate jobs. However, a big challenge that many SMEs have is their inability to obtain the necessary funding. There is restricted access to credit, loans, and contemporary financial technologies, particularly for newly established small business owners.

The SME Business Credit Card is a new product that People's Bank and Mastercard have launched to help address this issue. This card was created specifically to satisfy the financial requirements of small business owners. On June 27, 2025, it was introduced at the Gampaha Municipal Council Stadium as part of the World SME Day festivities.

The SME Business Credit Card is another form of credit card provided to the owners of small and medium sized businesses that they can avail of helpful financial resources. These are some of the key features:

• No enrolment fee

•  The first-year annual fee is free

• Availability of the Mastercard deals in Sri Lanka and to the international markets

• Overseas free travel protection to the up to $100,000

• Flexible repayment up to 60 months

• Year-round discounts with various shops and services

These benefits are attractive for entrepreneurs who want to manage their business expenses and cash flow easily.

This new SME Business credit card is more than just a banking product. It shows how banks and financial institutions can support the economy by helping small businesses to grow.
People’s Bank, a leading government-owned commercial bank, is showing its role as a financial intermediary. It connects savers with borrowers and supports businesses with financial services.

Mastercard is a global payment service provider that handles secure transactions worldwide. This partnership allows SMEs to use their credit cards locally and globally, giving them access to the wider financial system.

The other problem with SMEs is that they fail to access loans in banks due to lack of credit history. This card will enable them to get short-term credit on flexible repayment so they can invest on inventory or marketing or travel.

In the case of People bank, it is facilitating financial inclusion by launching a product to the SME clients in ensuring that additional people and small enterprises have access to formal financial services.

The credit card can be of much help to the owners of SMEs in numerous aspects:

• Improved cash flows: Businesses can make instalments with terms of up to 60 months, therefore helping them to manage cash flows.

• Travel and trade: The business owners have the insurance cover and use it abroad as they travel and conduct business with ease.

• Cost of saving: Business costs are cut down with discount and special offers.

Such advantages help SMEs to compete and grow at a higher pace and also minimize risks.

People's Bank and Mastercard's introduction for the SME Business Credit Card is a step of new path for Sri Lanka's banking and business landscape. It demonstrates how financial products may be developed by banks to meet the actual demands of entrepreneurs.

Financial innovations like this card will be essential to creating a more robust and equitable economy as SMEs continue to play a significant role in Sri Lanka's development.

Written by - Theebiga Rajendran

Title of the original article -"People's Bank launches SME Business Credit Card in partnership with Mastercard"
Publication Date - 15th July 2025
Source- Daily FT