Cabinet approval has been granted for the implementation of a Rs. 20 billion credit scheme to revive the micro, small and medium enterprise sector in Sri Lanka.
According to the government, the proposed Rs 20 billion will be spent on the entire project which has two components.
Out of this, Rs. 15 billion will be used to strengthen existing and new enterprises and the remaining amount of Rs. 05 billion will be used to support enterprises under the non-performing loan category.
The government states a significant number of small and medium-scale entrepreneurs involved in manufacturing, import, export, tourism, apparel and various other commercial operations have found it very difficult to continue running their enterprises as a result of the economic downturn and the impact of external factors beyond their control.
The Asian Development Bank (ADB) has agreed to provide working capital support for the small and medium enterprise sector as a relief.
The proposed program is intended to provide credit facilities to existing micro, small and medium-scale enterprises for further expansion and recovery of their businesses through licensed commercial banks and licensed specialized banks at concessional interest rates.
Accordingly, the Cabinet has approved the proposal presented by the President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to implement the said project. (NewsWire)