A comprehensive package of financial facilities was introduced today to revitalize micro, small, and medium-scale enterprises (MSMEs) in Sri Lanka.
The package, which includes both investment and working capital facilities, was launched under the patronage of President Ranil Wickremesinghe at the Presidential Secretariat.
According to the President’s Media Division (PMD), the following are the key factors of the newly introduced package of financial facilities for MSMEs.
- Fifteen Participatory Financial Institutions, including Licensed Commercial Banks and Licensed Specialized Banks, are offering these loans at subsidized interest rates. This initiative is designed to support MSMEs that have maintained operations despite the ongoing crisis.
- The loans are provided under two main categories: support for MSMEs and assistance for MSMEs with non-performing loans. The Ministry of Industries will issue recommendation letters to eligible MSMEs that require financial support and have the potential to upgrade their businesses to the next level.
- Under the Micro, Small, and Medium Enterprises Strengthening Investment Loan scheme, loans are available at a concessional interest rate of 7% for a period of 10 years, with a maximum limit of Rs. 15 million. A total of Rs. 13 billion has been allocated for this scheme.
- For MSMEs under the non-performing loans category, a working capital loan of up to Rs. 5 million is provided for a period of 5 years at an interest rate of 8%. The total allocated amount for this initiative is Rs. 5 billion.
- The participating financial institutions include the Bank of Ceylon, People’s Bank, Regional Development Bank, State Mortgage and Investment Bank, Hatton National Bank, Seylan Bank, Sampath Bank, Commercial Bank, DFCC Bank, National Development Bank, Nations Trust Bank, Sanasa Development Bank Limited, Union Bank, Pan Asia Bank, and Cargills Bank.
Speaking at the event to introduce the package, President Ranil Wickremesinghe emphasized that strengthening MSMEs is crucial for the country’s progress. He highlighted that small and medium-scale entrepreneurs were the most affected by the recent economic collapse in Sri Lanka, and the government is prioritizing their recovery. The President also announced the establishment of a National Development Bank to provide necessary capital to MSMEs.
Additionally, President Wickremesinghe mentioned efforts to attract foreign investments to support large-scale entrepreneurs and outlined the government’s programs aimed at uplifting the common people of the country.
This new credit scheme aims to enhance the resilience of MSMEs as they recover from the economic crisis and navigate risks stemming from changes in the business environment, including climate change. Special attention is given to sectors such as agriculture, tourism, manufacturing, technical and export-oriented industries, and women-led MSMEs (excluding trading, leasing, and business rental) that require working capital financing.
The scheme also supports the government’s objective of securing foreign exchange and transforming the economy from an import-dependent model to an export-driven one. (Newswire)