Rs. 13 Billion Package for MSMEs Announced by Sri Lanka’s President

News Today: Rs. 13 Billion Package for MSMEs Announced

The President announced yesterday that they will be providing a 13 billion Rupee financial package to Micro,Small and Medium Scale Enterprises(MSMEs)

Under the scheme, loans will be provided at a concessional interest rate of 7 percent for a period of 10 years, with a maximum limit of 15 million rupees, the president’s media division said. “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 5 million rupees will be provided for a period of 5 years at an interest rate of 8 percent. The total allocated amount for this initiative is 5 billion rupees.

“Strengthening MSMEs is crucial for the country’s progress,” Wickremesinghe was quoted in the statement. He also announced the establishment of a National Development Bank to provide necessary capital to MSMEs.

The subsidized loans will be offered through 15 financial institutions, including 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.

“This initiative is designed to support MSMEs that have maintained operations despite the ongoing crisis,” the PMD said.

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”.

The 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 will be 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.