Sri Lankan government’s Enterprise Sri Lanka porgramme increases demand for homes and vehicles
The implementation of the Enterprise Sri Lanka concessionary loan scheme by the Sri Lankan government and the latest decision to widen the programme has reportedly resulted in an increase in the demand for houses and small cars.
The programme has already disbursed some Rs. 36 billion.
The Finance Ministry issuing a statement has noted that migrant workers will get up to Rs. 10 million each as housing loans and owners of three-wheeled auto-rickshaws will get up to Rs. 2 million each under the new scheme.
“The government, on realizing the success of Enterprise Sri Lanka concessionary loan scheme, is to introduce further concessionary loan to widen the schemes enabling the stake holders to move towards next generation economic activities in their areas of activities,” the statement has noted.
Migrant workers will be given up to Rs. 10 million concessionary housing loans to be repaid in 15 years with two year grace period.
Migrant workers who have registered under the Foreign Employment Bureau will have to save a considerable amount of their remittance in a local bank and 75 percent of the interest rate will be borne by the government through the Treasury.
Concessionary loans of up to Rs. 2 million will be given to three wheel owners to convert to a safer and comfortable mini taxi service with small cars, the Ministry has stated.
The Enterprise Sri Lanka scheme offers attractive concessionary financing to stimulate investment and expansion by entrepreneurs, SMEs and even large business.
The loan amount ranges from Rs. 50,000 to Rs. 750 million.
The proposal made by the Minister of Finance and Mass Media Mangala Samaraweera to expand the already approved loan schemes to cover more areas was approved by the Cabinet of Ministers last week.
The Enterprise Sri Lanka concessionary loan scheme introduced under the 2017 and 2018 budgets had been a huge success, the statement has added.
According to the Ministry, the self employed, women entrepreneurs, and small and medium entrepreneurs have so far been registered for various loan schemes of up to 65 billion rupees through state and private banks.
OSL take:
The increase in demand for small cars and houses in Sri Lanka indicates an expansion in business opportunities in the country. While investments could be made in the house and property sectors, importing small cars is also a new business venture to consider. The government’s concessionary loan scheme also indicates an increase in public spending power. Therefore, there will be an overall increase in the business opportunities in the country.
| Article Code : | VBS/AT/29012019/Z_1 |