Govt. extends low interest rate working capital loan scheme to SOEs

• 282 partially or fully-owned SEOs crippled as a result of non-operation due to COVID-19

The Cabinet of Ministers has decided to extend the concessionary 4% interest rate bearing working capital loans through the Central Bank-backed ‘Saubagya’ scheme to public sector ventures as well.

“These ventures have confronted difficulties to source working capital required for day-to-day operations. Therefore, it was decided to extend the ‘Saubagya’ facility for these public ventures,” Cabinet Co-Spokesman and Plantation Industries Minister Dr. Ramesh Pathirana said at the post-Cabinet meeting media briefing yesterday.

The proposal to this effect was submitted by Finance Minister Basil Rajapaksa.

Pathirana said 282 partially or fully-owned State enterprises had been crippled as a result of non-operation of market mechanisms due to the COVID-19 pandemic.

The Minister also said under the ‘Saubagya COVID-19 Rehabilitation Facility’, Rs. 156 billion in loans had been granted to 53,200 entrepreneurs as working capital.