Commercial Bank transforming SME growth through fast, intelligent, and customer-centric AI-powered lending

Commercial Bank of Ceylon Managing Director/CEO  Mr. Sanath Manatunge

At a time when the Sri Lankan economy is navigating a crucial phase of recovery, empowering Small and Medium Enterprises (SMEs) has become more important than ever. As the backbone of the economy, SMEs continue to play a vital role in driving growth, employment, and innovation. Today, the sector is gaining increasing momentum in embracing digital transformation and modern business practices, positioning itself within a more progressive, technology-driven landscape that more fully reflects its scale, resilience, and long-term potential.

As the largest lender to Sri Lankan SMEs and a trailblazer in innovation, Commercial Bank of Ceylon continues to lead this transformation, introducing Sri Lanka’s first AI-powered SME Credit Underwriting Solution in 2025, a landmark initiative designed to redefine access to finance. This move underscores the Bank’s commitment to shaping the future of SME banking and supporting economic growth. Sharing his vision and insights on this transformative journey, Managing Director/CEO Mr. Sanath Manatunge offers his perspective on the role of technology in driving the next phase of SME development.

Q Could you elaborate on the strategic significance of the AI-powered SME Credit Underwriting Solution within Commercial Bank’s broader transformation agenda?

The introduction of this solution represents a pivotal milestone in our digital transformation journey. It signifies a deliberate shift from traditional, process-driven banking towards a more intelligent, insight-led operating model. By embedding advanced analytics and machine learning into our core lending processes, we are not only enhancing operational efficiency but also fundamentally redefining how we understand and serve our SME customers. This initiative further strengthens our ability to scale sustainably while maintaining the agility required in an increasingly dynamic financial landscape.

Q What underlying market dynamics and strategic priorities influenced the Bank’s decision to invest in this capability?

The decision was driven by a confluence of factors, including evolving customer expectations, heightened competition, and the growing need for speed and precision in credit delivery. SMEs today operate in highly dynamic environments where timely access to capital is critical. Recognizing this, we identified an opportunity to move beyond conventional underwriting frameworks and introduce a more responsive, technology-driven solution. This initiative also closely aligns with our commitment to supporting national economic priorities and advancing ESG principles through more inclusive and accessible financing.

Q From an operational perspective, how does the platform enhance the quality and consistency of credit decision-making?

The platform leverages proprietary algorithms to evaluate both financial and behavioural data, enabling a more comprehensive assessment of creditworthiness. By automating key components of the underwriting process, we significantly reduce manual intervention, thereby enhancing consistency and minimising subjective bias in credit underwriting. Importantly, the system not only assesses risk but also generates actionable insights that allow us to tailor financial solutions more effectively. The outcome is a more robust, transparent, efficient and reliable credit evaluation framework.

QIn what ways does this solution redefine the value proposition of SME lending compared to traditional models?

This solution fundamentally repositions SME lending from a standardised, product-centric approach to a highly personalised, data-driven, logical engagement model. It enables us to deliver faster turnaround times without compromising the integrity of risk assessment. At the same time, predictive analytics allow us to anticipate customer needs and structure financing solutions accordingly. By combining speed, precision, and personalisation, we are setting new benchmarks for customer experience and operational excellence within the SME segment.

QHow does this innovation translate into tangible value for SME customers?

The value for SMEs is both immediate and strategic. Faster access to credit enhances their ability to respond to market opportunities and manage business cycles more effectively. The platform’s capability to deliver customised financing solutions ensures greater relevance and alignment with each enterprise’s growth trajectory. Additionally, the streamlined, largely digital process reduces administrative burdens, while enhanced transparency helps builds trust. Collectively, these benefits contribute to a more empowering and enabling banking experience for SMEs.

Q How does this initiative support Commercial Bank’s long-term vision for innovation and sustainable growth?

This initiative is integral to our long-term vision of building a future-ready, technology-driven banking institution. It reflects our commitment to continuously evolving our business model in line with changing customer needs while maintaining a strong focus on technology and AI. By integrating AI into our lending processes, we are creating a scalable platform that supports responsible growth, enhances customer experience, and strengthens our competitive positioning. It also lays the foundation for extending similar capabilities across other lending portfolios.

QWhat role do you see this solution playing in strengthening the resilience and growth of Sri Lanka’s SME sector?

As we know SMEs are a critical engine of economic growth, and their ability to access timely and appropriate financing is essential to their success. As the largest lender to SME’s, we have both the opportunity and responsibility to drive meaningful impact. This solution enhances accessibility, efficiency, and transparency in credit delivery, enabling SMEs to scale with confidence. Moreover, by encouraging a shift towards more data-driven financial practices, it contributes to improved financial discipline and decision-making. Ultimately, it supports the development of a more resilient, competitive, and future-ready SME sector, which is vital to the broader economy.