An upturn in tourism after a war ended in May 2009 has sent businesses scrambling to plan new hotels, with top groups including John Keells, Aitken Spence and Jetwing unveiling expansion plans or new projects.
"Already a few hotels are discussing with us," chief executive Harris Premaratne said.
"There is a gestation period for projects because environmental and other approvals are needed."
Sampath was looking at funding project in the East of the country, in Kalpitiya in the northwestern coast and also Colombo.
Premaratne says the country needs new hotels, as existing rooms are not enough to cope with expected peace-time demand. This year arrivals are expected to top 620,000.
Sampath will give dollar denominated floating rate loans linked to the London Interbank offered rate to hotels which have foreign exchange revenues to hedge forex risk.
The bank is also looking at mini-hydro and wind power projects and pushing strongly into credit cards. Premaratne said the bank already had the third slot in the 850,000 card market and is on track to top 100,000 card holders early next year.
"We expect about 30 percent loan growth in our bank next year," Premaratne.
Sri Lanka's central bank has cut policy rates and urged banks to lend to business.
So far this year expanding international trade has increased demand for import and export facilities while a cut in vehicle import duties had sharply increased demand for vehicle loans.
Up to September 2010 advances grew 22.1 percent to 110.4 billion rupees from January which is already higher than the industry average.
According to central bank data, loans to business from all commercial banks grew 13.8 percent to 1,361 billion rupees in the same period.
Sampath won 'Bank of the year' for Sri Lanka from UK-based The Banker magazine this year for its 2009 performance.
Director Ranjith Samaranayake said the award was in part given due to its 3.0 percent credit growth in 2009, when loans contracted in most banks.
source - www.lbo.lk
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