Sri Lanka launches new registry covering moveable assets to help SMEs unlock value in intangibles

Photo by Siarhei Palishchuk on Unsplash

The Central Bank of Sri Lanka (CBSL), in partnership with the Credit Information Bureau of Sri Lanka (CRIB), has taken a major step towards facilitating IP-backed finance with the official launch of the Secured Transactions Registry (STR). This registry will mean SMEs with valuable intellectual property and other intangible assets will be able to use them as security for borrowing.

According to a news story from the Sri Lanka Mirror, the STR, which was developed following last year’s passing by Parliament of the Secured Transactions Act No. 17 of 2024, will be administered by the newly established Secured Transactions Registration Authority (STRA).

It is a digital platform which will enable lenders to register security interests in movable and intangible assets such as machinery, inventory, crops, and intellectual property which they are taking as collateral for loans.

Sri Lanka is one of many countries over the past year or so which have changed their laws to allow for the use of ‘moveable property’ as collateral. Many legal jurisdictions still block the use of such assets as collateral for lending or other financial purposes because, since they have no physical existence, a lender cannot ‘take possession’ of them in the same way they can with tangible assets such as buildings or equipment.

In the UK, Scotland passed a Moveable Transactions Act to create a similar Registry at the end of 2023. This law went live on April 1st, 2025. As a result of the change in Scottish law, Royal Bank of Scotland (part of the National Westminster Bank group) will now be rolling out a localised version of the NatWest High Growth IP-backed Loan (created in partnership with IP valuation and monetisation experts, Inngot) early in 2026.

This NatWest IP-backed loan, launched in January 2024 in England and Wales, involves SMEs using Inngot’s world-first online IP identification and valuation platform to demonstrate to NatWest what assets are driving real value for SMEs and hence can be used as collateral by the bank.

CBSL Governor Dr. Nandalal Weerasinghe said at the launch of the new Sri Lankan Registry:

“More than half of MSMEs in Sri Lanka and other emerging markets struggle to access credit, primarily due to the lack of acceptable collateral. Most of their valuable assets are movable—machinery, equipment, trade receivables—yet financial institutions prefer immovable property like land and real estate. This registry changes that dynamic by creating a legal and institutional framework for movable asset financing.”

He added that Sri Lankan banks have historically been reluctant to accept movable assets due to the absence of a public registry, inadequate legal provisions, and limited expertise in asset-based financing.

Dr. Weerasinghe concluded:

“This system will make credit markets more efficient. It allows businesses to unlock the value of their assets, while giving creditors predictable rights in case of default. Ultimately, this will enhance financial inclusion, entrepreneurship, and credit-to-GDP ratios in Sri Lanka.”

Sri Lanka is joining a growing list of countries which have changed their laws and regulations to allow intangibles, including IP, to be used as security for bank lending and related transactions.

In addition to Scotland, this list includes the Bahamas, Uganda, Nepal, Jamaica, and Iran, which have all proposed or passed legislation to better facilitate the use of IP value in IP-backed finance.