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Sri Lanka to give cut-price loans to small and micro firms hit by crisis

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Updated on : 01-11-2022

Sri Lanka to give cut-price loans to small and micro firms hit by crisis

Sri Lanka will give loans up to 10 million rupees to small and micro enterprises in agriculture, tourism or exports, hit by an ongoing economic crisis using an Asian Development Bank Credit line, the Finance Ministry said.

The Asian Development Bank has agreed to re-purposes the 13.5 million US dollars (4.9 billion rupees) left over from an existing Small and Medium-sized Enterprises Line of Credit (SMELoC) Project for the scheme.

participating credit institutions at the rate of 612 million rupees each.

Bank of Ceylon, Regional Development Bank, Hatton National Bank, Commercial Bank, Seylan Bank, National Development Bank, Nations Trust Bank and Sampath Bank have been allocated 612 rupees each to on-lend.

The loans will carry rate rate of 11-12 percent compared to current market rates of 20 to 25 percent, the Finance Ministry said.

Small and micro enterprises in agriculture, exports or tourism which are hit by an ongoing economic crisis could apply for working capital from the facility.

The loans will have a 6 month grace period and 3-year repayment period.

Source: https://economynext.com/sri-lanka-to-give-cut-price-loans-to-small-and-micro-firms-hit-by-crisis-101548/