Sri Lankan government to focus on the expansion of enterprises through Budget 2018
Sri Lanka’s Finance Ministry is to make provisions to create a credit scheme with the allocation of Rs. 15 billion in target sectors for low interest loans to fund modernization and expansion of enterprises.
Finance Minister Mangala Samaraweera explaining the 2018 budget proposal has said that the new loan scheme will have a interest rate of 6.5 percent and in some cases 3.3 percent.
Many young entrepreneurs and SMEs have innovative business ideas but find it difficult to make it viable at prevailing interest rates of 15 percent and above.
“In parallel, a SME guarantee fund is also being set up to enable SMEs with sound business plans to access credit without collateral,” Samaraweera has said.
“A Development Bank with an Exim window will provide development capital in the form of long term loans, project lending, and start up financing.”
The Minister expressed confidence that these new initiatives will change the entire landscape of Sri Lankan enterprise, which is one of the main themes of the government’s 2018 budget.
Referring to various suggestion made by different sectors of the economy on the budget the Minister has been quoted in the media as saying that he was willing to listen to suggestions where there may be mistakes to correct.
Minister Samaraweera has also pointed out that another main theme of the budget was liberalization and Enterprise Sri Lanka and liberalizations were therefore non- negotiable.
OSL take:
The government’s move to promote Enterprise Sri Lanka through low interest loans to fund modernization and expansion of enterprises would open up many business opportunities in the country with local entrepreneurs being in a position to even look at international partnerships to set up businesses.
| Article Code : | VBS/AT/16112017/Z_7 |