• 15 financial institutions to offer loans at subsidised interest rates

In an effort to uplift the micro, small, and medium-scale enterprises (MSMEs), the government yesterday launched a comprehensive package of financial facilities which includes both investment and working capital facilities for the sector.  A total of Rs. 13 billion has been allocated for this scheme.

Fifteen participatory financial institutions, including licensed commercial banks and licensed specialised banks will offer loans at subsidised interest rates. The initiative is designed to support MSMEs that have maintained operations despite the ongoing crisis.

The participating financial institutions include 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.

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 will be made available at a concessional interest rate of 7 percent for a period of 10 years, with a maximum limit of Rs. 15 million. 

For micro, small, and medium-scale enterprises (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 percent. The total allocated amount for this initiative is Rs. 5 billion.

This new credit scheme aims to enhance the resilience of micro, small, and medium enterprises (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.

This new credit scheme aims to enhance the resilience of micro, small, and medium enterprises (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.