ADB provides US$ 9.5 million grant to Sri Lanka to support the ongoing SME line of credit for women
The Finance Ministry of Sri Lanka has stated that the Asian Development Bank (ADB) has provided a grant of US$ 9.5 million through Women Entrepreneurs Finance Initiative (We–Fi) to support the ongoing Small and Medium Enterprises (SMEs) line of credit.
According to the statement issued by the Finance Ministry, financial inclusion for SMEs is important to realize the development objectives of the Government, such as promoting exports, generating jobs and increasing per capita income.
Therefore, the government has reportedly mobilized US$ 100 million from the ADB in 2016, with the objective of financing SMEs and having successfully disbursed these funds, another US$ 75 million was mobilized from ADB in 2018 as an additional financing to further enhance the benefits to the SME sector.
The Ministry has stated that since women-led SMEs face significant difficulties in accessing finance, a grant of US$ 12.5518 million will be mobilized from the We–Fi, on top of the loan funds for encouraging women entrepreneurs.
Accordingly, out of the grant of US$ 12.5518 million, US$ 9.5 million will be provided to the women entrepreneurs on grant basis through participating financial institutions. The balance amount of the grant will be used for technical assistance and administrative cost.
Additional incentives are to be provided for women who complete business skills training and for women in Uva, Sabaragamuwa, Northern and Eastern provinces.
The government of Sri Lanka is in the process of launching a programme to empower the SME sector in the country with special focus on promoting women entrepreneurs. The grant by the ADB would also add to the promotion of the programme. Therefore, foreign businesses could look at tying up with local SMEs for business development and engage in operations covering many sectors in the country.
| Article Code : | VBS/AT/20180713/Z_4 |