Fully or partially State-affiliated ventures to get working capital facilities

The Cabinet nod was given to extend working capital facilities for 282 fully or partially State–owned ventures under ‘Saubhagya COVID-19 Rehabilitation Facility’ concessionary loan scheme to float up these entities out from the pandemic infused crisis.

Minister of Finance Basil Rajapaksa on Monday furnished the resolutions to the Cabinet of Ministers for approval. 
“The monitoring activities of approximately 282 totally or partially government – owned ventures in action at present have been crippled due to non – operation of market mechanism properly due to the COVID-19 pandemic situations,” the Government Information Department noted.

As the loan scheme supported 53,200 entrepreneurs in the small and medium enterprise sector to meet their working capital requirements disbursing Rs.156 billion to stay afloat during the pandemic, the Co-Cabinet Spokesperson and Minister of Plantation, Dr. Ramesh Pathirana said that the government expects the 282 State-led ventures to achieve similar success.  The Saubhagyaa loan scheme which was implemented by the Regional Development Department of the Central Bank through the banking sector offered two months of working capital requirements for firms up to Rs. 1 billion in turnover. 

Further, large businesses in hardest hit-sectors such as tourism, exports and related logistical suppliers were also eligible for the scheme. The concessionary terms included four percent interest rate and maximum repayment period up to two years including a maximum six-month grace period.