Govt. enhances Enterprise Sri Lanka loan scheme

• Rs. 2 m for three-wheeler owners to upgrade to mini taxi service with small cars

• Rs. 10 m housing loan for migrant workers 

• Self-employed, women entrepreneurs, small and medium entrepreneurs have so far applied for Rs. 65 b via State and private banks under 16 loan schemes

• Finance Ministry says loans worth Rs. 36 b have been disbursed to over 34,500 applicants

The Government said yesterday it was expanding the successful Enterprise Sri Lanka concessionary loan scheme, empowering two key segments of the economy.

The Finance Ministry said migrant workers would be given up to Rs. 10 million concessionary housing loans to be repaid in 15 years with a two-year grace period.

According to the new scheme proposed, migrant workers who have registered under the Foreign Employment Bureau will have to save a considerable amount of their remittance in a local bank and 75% of the interest rate will be borne by the Government through the Treasury. 

“It has been perceived that the dream of many of the migrant workers is to have their own house. But the lack of proper guidelines and financial management has made it impossible for them,” the Finance Ministry said.Another novel scheme introduced is to provide concessionary loans up to Rs. 2 million to three-wheeler owners to convert to a safer and more comfortable mini taxi service with small cars. The Government will bear 75% of the interest rate and the three-wheel owners who operate their own three-wheelers and who are above 35 years of age are entitled to this concessionary loan

A proposal made by Minister of Finance Mangala Samaraweera to expand the already-approved loan schemes to cover more areas was approved by the Cabinet of Ministers last week.

The Finance Ministry said the Enterprise Sri Lanka concessionary loan scheme introduced under Budgets 2017 and 2018 had been a huge success. 

The self-employed, women entrepreneurs and small and medium entrepreneurs have so far been registered for various loan schemes up to Rs. 65 billion via State and private banks and loans worth Rs. 36 billion have been disbursed to over 34,500 personnel. Self-employed, farmers and even the journalists are given interest free loans under this.

As Sri Lanka’s ageing population is on the increase, Samaraweera has proposed to introduce another loan scheme of providing Rs. 10 million with 75% interest concession to construct elderly care centres as the private sector investment.

The newly-introduced loan schemes with the previous schemes will be continued in the year 2019 as well and on the proposal made by Minister Samaraweera the Cabinet approval has been granted to allocate Rs. 700 million to pay the interest rates to the bank through which these loans will be channelled. The Treasury has been authorised by the Cabinet to enter into agreements with State and private banks to extend the loan scheme in this year too.

The Enterprise Sri Lanka program inaugurated on 22 June 2018 previously consisted of 16 schemes and the special feature is that the Government on behalf of the loan recipient pays either the total interest or part of the interest to the relevant bank.

The Enterprise Sri Lanka scheme offers attractive concessionary financing to stimulate investment and expansion by entrepreneurs, SMEs and even large business. The loan amount ranges from Rs. 50,000 to Rs. 750 million.