Loans will be granted to SMEs in future on the viability of their projects proposals and not solely on the collateral offered.
For this purpose the Government has provided a sum of Rs. 6 billion to be disbursed to the SMEs as they form the backbone of the country’s industrial sector and make up around 80 % of the total industrial strength of the country, said Federation of Chamber of Commerce and Industry of Sri Lanka Secretary-General Dr. Thusitha Tennakoon at the announcement of the SME Machinery, Technology and Services Exhibition 2011 in Colombo recently.
He said that this was the first time banks have moved away from their traditional method of giving loans by demanding large collateral. This should encourage SMEs to buy new machinery which will enable them to reach higher levels of productivity, he said adding that these monies are available through the Bank of Ceylon, People’s Bank, Hatton National Bank, Regional Development Bank and Sampath Bank. Presently the banks are working out their procedures of disbursement.
There are latest types of machines available in the market that have not been brought down which local SMEs are not aware which this exhibition will showcase. Machinery required for industry, agriculture, construction and livestock will be displayed at this exhibition. This will enable the SMEs to improve knowledge on what is available to them in terms of latest technology available. The exhibition will have 12 Indian participants most of whom will showcase the latest machinery in rice production.
Speaking at the function, Minister of Industry and Commerce, Rishard Bathiudeen, said that the development of the SME sector meant the development of the country. It is of vital importance to see that the SME are nurtured and brought to their full strength and the exhibition will be an ideal platform to enhance the potential of the SME sector, he said. |
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