Director/GM Pushpike Jayasundara shares Insights for a Strong Credit Ecosystem at the Ignite Growth Conference 2025
Q: What role does the Credit Information Bureau of Sri Lanka (CRIB) play in the country’s financial ecosystem?
A: CRIB serves as a foundational pillar in the country's financial infrastructure, enabling the efficient functioning of credit eco system. It provides critical, real-time credit information to regulated lending institutions, which are banks and non-bank financial institutions, to facilitate informed credit and risk assessments to speed up lending. By doing so, CRIB plays a vital role in sustaining the flow of credit across the economy and supporting financial stability.
To fulfill this mandate, CRIB has a robust technological ecosystem designed to collect, collate, analyze, and disseminate credit-related data with a high degree of accuracy, security, and confidentiality. Its systems ensure data integrity while incorporating advanced features for value addition, such as credit scoring models, analytical tools, monitoring & alerts and automated decision-making that supports lenders to speed up the lending process.
These services are rendered in accordance with its statutory mandate, thereby contributing to evidence-based lending, policy formulation, enhanced regulatory oversight, and improved credit market transparency in Sri Lanka.
Q: How does CRIB contribute to financial inclusivity?
A: CRIB addresses credit information asymmetry between between borrowers and lenders, which often prevents individuals/firms from accessing financial services. By leveraging advanced technology, it provides data-driven solutions that support responsible lending and create opportunities for more people to enter the formal credit eco system.
Q: There is a common belief that CRIB blacklists borrowers. Is this true?
A: No, this is a widespread misconception. CRIB does not engage in categorizing or blacklisting borrowers. Rather, CRIB functions as a neutral information provider, facilitating the efficient and effective assessment of creditworthiness by lending institutions.
By providing accurate and timely credit information, CRIB enables lenders to make informed decisions, allowing eligible borrowers to access credit more easily, with faster approval times and on more favorable terms. Far from acting as a barrier, CRIB actually enhances access to finance by reducing uncertainty and information asymmetry in the credit market.
Moreover, CRIB plays a crucial role in promoting a culture of responsible borrowing and lending. By instilling credit discipline in the financial ecosystem, it contributes to a more stable and healthy credit environment, ultimately supporting sustained economic growth.
Q: How is CRIB working to improve financial awareness among the public?
A: CRIB has undertaken multiple initiatives to educate individuals and businesses on maintaining good credit health. It promotes awareness about financial discipline, access to personal credit information, and the ability to obtain your own credit reports directly via www.crib.lk.
Q: What is a credit profile
A: A credit profile is a comprehensive summary of an individual’s or entity’s credit history and current credit status, compiled from data submitted by lenders. It serves as a financial reputation report.
Q: What is CRIB doing to help unbanked individuals build credit profiles?
A: A credit profile is a critical prerequisite for accessing credit, whether as an individual or a business entity. Without an established credit profile, it becomes significantly more difficult to obtain loans or other forms of credit, as lenders lack the necessary information to assess the applicant's creditworthiness.
To address this challenge and expand financial inclusion, CRIB is in the process of developing a credit scorecard for currently "unbanked" or "thin-file" individuals—those with limited or no formal credit history. In collaboration with relevant authorities, CRIB is working to incorporate non-traditional data sources, such as utility bills, mobile phone usage patterns, and other recurring financial obligations. This will help individuals without previous access to formal financial services to build a verifiable credit record, thereby enabling them to access credit on better terms and participate more fully in the financial system.
Q: How will incorporating alternative data sources benefit borrowers?
A: By considering factors like utility bills and telecom usage, CRIB can help to build credit profiles to secure credit. This prevents them from turning to informal lenders and its negative impact.
Q: What technological advancements has CRIB implemented recently?
A: In 2023, CRIB upgraded to an advanced IT platform to enhance operational efficiency. In 2024, it digitalized most of its services, enabling general public to real-time access to credit information. The CRIB Credit Score, an internationally recognized risk assessment tool, is now widely used for evaluating borrower creditworthiness to enhance credit flow. Also it provides many other data related value added services to maintain a robust credit eco system
Q: What is the upcoming SME Score tool, and how will it help businesses?
A: The MSME Score tool, currently under development, will help medium, small and micro, enterprises (MSMEs) to secure loans using the same as a referral and obtain better terms and conditions. By using non-traditional data sources, it will particularly beneficial MSMEs to borrower from formal banks and NBFIs at better terms and conditions. Maintaining a good Score Card will assist them to borrow without traditional collateral.
Q: How does Sri Lanka’s current lending system impact credit access?
A: The country’s lending framework is largely collateral-based, restricting access to credit for many individuals and businesses. CRIB’s initiatives, and value added products such as the CRIB Scores, MSME Score card, usage of alternate data aim to shift the dependence from collateral base lending to risk base lending., making financial access more equitable.
Q: How are credit scores generated, and why are they important?
A: Credit scores are generated using statistical models that analyze financial behavior patterns based on over identified key data points. These scores assess an individual’s probability of defaulting within 12 months, helping lenders make informed decisions while enabling borrowers to secure credit under better terms.
Q: What is the Secured Transactions Registry (STR), and how will it benefit borrowers?
A: The STR, set to launch under the Secured Transactions Registry Act No. 17 of 2024, will allow movable assets—such as machinery, inventory, Livestock and intellectual property—to be used as loan collateral. This initiative aims to increase financial inclusion and expand lending opportunities for the development of the economy.
Q: How do credit scores influence financial behavior beyond borrowing?
A: In many developed nations, credit scores impact more than just lending—they influence rental agreements, insurance premiums, and even employment opportunities. CRIB aims to promote financial discipline in Sri Lanka by encouraging individuals to maintain strong credit scores, which can lead to greater social and financial mobility.
Q: What are CRIB’s future goals for strengthening Sri Lanka’s credit ecosystem?
A: CRIB remains committed to digital transformation, financial inclusivity, to maintain a healthy credit flow and responsible lending. By expanding data-driven credit assessment tools and enhancing financial literacy, it aims to create a more resilient and accessible credit ecosystem in Sri Lanka.
