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Yesterday (18th), under the impetus of President Ranil Wickremesinghe, the Presidential Secretariat launched a package of financial facilitation measures to revive micro, small and medium enterprises (MSMEs). The package includes investment and working capital facilities for SMEs.
Fifteen participating financial institutions, including licensed commercial banks and licensed specialized banks, are providing these loans at subsidized interest rates. The scheme is aimed at supporting micro, small and medium enterprises that remain operational amid the ongoing crisis.
The loans are mainly divided into two categories: supporting SMEs and helping SMEs with bad loans. The Ministry of Industry will issue recommendation letters to eligible SMEs that need financial support and have the potential to take their business to the next level.
Under the Micro, Small and Medium Enterprises Enhanced Investment Loan Scheme, loans are available at a concessional interest rate of 7% for a tenure of 10 years with a maximum limit of Rs 15 million. A total of Rs 1,300 crore has been allocated for the scheme.
For micro, small and medium enterprises (MSMEs) under the bad loan category, working capital loans of up to Rs 50 lakh will be provided for a period of five years at an interest rate of 8%. The total allocation under this scheme is Rs 500 crore.
The participating financial institutions include Bank of Ceylon, People’s Bank, Regional Development Bank, National Mortgage and Investment Bank, Hatton National Bank, Bank of Seyram, Sampat Bank, Commercial Bank, DFCC Bank, National Development Bank, National Trust Bank, Sanasa Development Bank Limited, Union Bank, Pan Asia Bank and Cargill Bank. Speaking at the event, President Ranil Wickremesinghe stressed that strengthening MSMEs is crucial for the country’s development.
He stressed that small and medium entrepreneurs are the biggest victims of Sri Lanka’s recent economic collapse and the government is prioritizing their recovery. The President also announced the establishment of a National Development Bank to provide necessary funds to small, medium and micro enterprises.
Additionally, President Wickremesinghe mentioned efforts to attract foreign investment to support large entrepreneurs and outlined the government’s plans to uplift the country’s common people. The new credit scheme aims to build resilience in micro, small and medium enterprises (MSMEs) to help them recover from the economic crisis and cope with risks arising from changes in the business environment such as climate change. Special attention has been paid to sectors such as agriculture, tourism, manufacturing, technology and export-oriented industries, and women-led MSMEs (excluding trading, leasing and commercial leasing) that require working capital financing. The scheme also supports the government’s goal of securing foreign exchange and shifting the economy from an import-dependent model to an export-driven one.
The event was attended by Health and Industry Minister Dr Ramesh Pathirana, State Ministers Ranjith Siyambalapitiya, Shehan Semasinghe, Prasanna Ranaweera, Chief of Staff to the President and Senior National Security Advisor to the President Sagala Ratnayaka, Secretary to the Finance Ministry Mahinda Siriwardena and other senior officials of the Ministry of Finance.
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