RDB, BOC launch collateral free loans for SME
The Ministry of Industries and Entrepreneurship Development along with the Regional Development Bank (RDB) and the Bank of Ceylon has started a collateral-free loans scheme for Small and Medium Entrepreneurs (SME) in line with its efforts to develop the sector, top officials said.
The RDB has started to develop 15000 SMEs on the island with loans, Lakshman Abeysekera, Chairman of National Enterprise Development Authority (NEDA) told The Sunday Times Business. “The BOC started the youth loan scheme by allocating Rs. 5 billion.” The ministry is taking initiatives to facilitate collateral-free loans to SMEs, based on recommendations of NEDA, Small Enterprise Development Department (SED), and other entities coming under the Ministry, he said further.
The Credit Guarantee Institution will cover the risk up to 60 per cent of the loan amount.
The “Made in Sri Lanka logo” recipients from NEDA and other SMEs recognised by the Ministry will support market connectivity in collaboration with the market and other demand chains to support their growth.
He added that entrepreneurship in the country is about 3 per cent and that is very low compared to regional peers in Asia, where in India it stands at 10 per cent.
He said the Ministry is setting up “Industry and Enterprise Development Centres” in divisional secretariats to provide services under one roof. This initiative will clear barriers to promoting entrepreneurship and will support the growth of the SME sector in Sri Lanka.
Under the guidance of Deputy Minister Chathuranga Abeysinghe, the Ministry is re-aligning five agencies, to provide an effective and efficient service, he added.
They are the Export Development Board (EDB ), Industrial Development Board( IDB), NEDA, SED, and the National Productivity Secretariat (NPS).
Mr. Abeysekera also said that the Ministry is taking initiatives to commercialise inventions, innovations, re- engineered goods, and services by utilising the Rs 1 billion budget allocation for R&D. “We plan to set up incubators and common working and processing facilities islandwide, to support this initiative,” he added.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!