Sri Lanka to implement a credit scheme to revive MSMEs sector

Sri Lanka to implement a credit scheme to revive MSMEs sector

February 27, 2024   07:20 pm

Cabinet approval has been granted to implement a project funded by the Asian Development Bank (ADB) to provide credit facilities at concessional interest rates to existing micro, small and medium-scale enterprises (MSMEs) in Sri Lanka for further expansion and recovery of their businesses.

The government said 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 has agreed to provide working capital support for the small and medium enterprise sector as a relief, the Government Info. Department said.

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.

Rs. 20 billion will be spent on the entire project which has two components. Out of this, Rs. 15 billion rupees 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. 

Accordingly, the Cabinet of Ministers 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, the statement said. 

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