Saturday Dec 14, 2024
Saturday Dec 14, 2024
Thursday, 21 December 2017 00:00 - - {{hitsCtrl.values.hits}}
Hatton National Bank (HNB) in collaboration with the Sri Lanka Export Development Board (EDB) has introduced and implemented a new export credit scheme for the benefit of small and medium scale exporters in Sri Lanka. This scheme came to operation in September with the collaborative effort of both institutions. This novel scheme has paved the way for SME enterprises to undertake and process confirmed export orders received from buyers without any hassle and speedily.
Further, this scheme has encouraged the new exporters to cater to export market. Any exporter having a confirmed order/s in his hand qualified to obtain assistance under the scheme up to Rs. 40 million or more than that depending on the value of order in Sri Lankan Rupees or any other acceptable foreign currency at a very low interest rate.
This has enabled the SME exporters to explore and enter in to new export markets and deal with new buyers while, catering the buyers needs in existing markets too.
According to HNB under the scheme Rs. 576 million has been disbursed up to date among 18 exporters to meet the working capital requirements against the confirmed orders received from buyers for the products i.e. coconut and coconut based, seafood, toys, tea, coir based and industrial brushes and spices.
In addition, 30 applications covering the product sectors of tea, ornamental fish, stationery items, food items, spices, mineral, apparel, vegetables, cosmetics and software received by the bank are being evaluated at present to grant financial assistance to facilitate for working capital requirements to service the orders in-hand at the SME exporters. According to the officials of HNB, 26 out of the above requests could also be financed positively in near future to precede with the export orders. Further, duration given to buyers for settlement of the bills has been extended to 120 days from the duration that existed for 90 days.
The beneficiary exporters stated that, the scheme is a great relief for new exporters to process with export orders in-hand as they had to invest their money on fixed capital investments such as factory buildings, machinery and equipment and commercial vehicles at the setting up of their businesses.
The EDB has proposed HNB to consider the same facility to be extended to indirect exporters (sub-contractors) too with a view to broad base the benefit of the scheme. The EDB as well as the HNB are confident that, this assistance scheme would be well supported toward achieving the export target of $ 20 billion in 2020.
Further information on this scheme could be obtained from the Head Office of Sri Lanka Export Development Board in Colombo and also from its Provincial Offices situated in Kandy, Matara, Kurunegala and Jaffna and from the SME unit of Hatton National Bank, Head Office in Colombo and island wide branches.
