Sri Lankan government widens credit schemes at subsidized interest rates to promote entrepreneurship
The government of Sri Lanka has reportedly widened a credit scheme at subsidized interest rates to promote entrepreneurship to include tourism and doubled housing loans.
Sri Lanka’s Finance Ministry has said eight credit facilities under its ‘Enterprise Sri Lanka’ loan scheme that aims to create 100,000 entrepreneurs within a year was approved by the Cabinet of Ministers this week.
The ‘Ran Aswenna’ loan scheme that targets productivity of agriculture has been extended to cover the tourism industry, a statement by the Ministry has said.
Entrepreneurs in tourism can borrow up to Rs. 250 million to buy equipment required for water-based tourism such as motor boats.
The Rs. 5 million housing loan granted under the Medium Income Housing Loan Scheme has been replaced with ‘Home Sweet Home’ Loan scheme with the amount increased to Rs. 10 million.
“This loan could be repaid within 25 years and the borrower has to pay only 6 percent of the interest,” the statement has further noted.
The Finance Ministry has stated that there are 22 relief loan schemes implemented under Enterprise Sri Lanka loan schemes introduced by the government.
Nearly Rs. 81 billion of loans have already been approved under the relief interest loan scheme and Rs. 55 billion have been granted as loans by the state and private banks.
OSL take:
The widening of credit schemes in Sri Lanka by the government targeting entrepreneurship has created an ideal opportunity for local businesses to expand and further consolidate themselves.
| Article Code : | VBS/AT/04062019/Z_4 |