The Ministry of Finance says that it will create a credit scheme with the allocation of 15 billion rupees in target sectors for low interest loans to fund modernization and expansion of enterprises.
The new loan scheme will have a interest rate of 6.5 percent and in some cases 3.3 percent, Mangala Samaraweera, Finance minister said.
Many young entrepreneurs and SMEs have innovative business ideas but find it difficult to make it viable at prevailing interest rates of 15 percent and above.
“In parallel, a SME guarantee fund is also being set up to enable SMEs with sound business plans to access credit without collateral,”
“A Development Bank with an Exim window will provide development capital in the form of long term loans, project lending, and start up financing.”
These new initiatives will change the entire landscape of Sri Lankan enterprise, the minister added.
Referring to various suggestion made by different sectors of the economy on the budget the minister said that he was willing to listen to suggestions where there may be mistakes to correct.
But the main theme of the budget he stressed was enterprise Sri Lanka and liberalizations are non- negotiable.