Sri Lanka’s public and private sector banking institutions to give start-up funds to expand SME in the country
The Sri Lankan government has decided to launch a scheme where 10 public and private sector banking institutions are to sign up for a government loan scheme with the aim of providing start-up capital or funds to expand small and medium enterprises (SMEs).
The Cabinet of Ministers has reportedly approved a proposal by Minister of Finance and Mass Media Mangala Samaraweera to enter in to loan agreements with 10 participating financial institutions.
Once the government implements the programme with the aim of securing funds for capital and working capital requirements of small and medium scale entrepreneurs, it would provide funds up to a maximum of Rs. 50 million with a 10 year repayment period.
The government’s latest project to assist local businesses is aimed at providing funds that could be utilized to start a business or expand an existing business.
OSL take:
The decision by the Sri Lankan government to launch a scheme to assist in local start-ups as well as the expansion of existing SMEs indicates the opening up of new business ventures in the country. Foreign companies looking to engage in partnerships with Sri Lankan companies could always look at joint ventures with local SMEs from a sector interesting to them. The government’s move would also result in the overall expansion of the country’s economy as well.
| Article Code : | VBS/AT/20180313/Z_1 |