Industrial Development Fund injects new life into micro, small and medium-scale industries

Tuesday, 19 September 2023 01:11 -     - {{hitsCtrl.values.hits}}


  • A total of Rs. 6.5 m will be disbursed in first phase benefiting 25 entrepreneurs in each district
  • Initiative aims to invigorate Sri Lanka’s entrepreneurial landscape, pave way for better economy

The Industrial Development Fund (IDF), administered by the Industrial Development Board (IDB) under the purview of the Ministry of Industry has joined forces with the Regional Development Bank (RDB) to extend loans to 25 deserving individuals. 

These loans, capped at a maximum of Rs. 500,000 per recipient, are earmarked for the expansion and development of micro, small, and medium-scale industries. The initiative aims to invigorate Sri Lanka’s entrepreneurial landscape, paving the way for a brighter economic future.

A total sum of Rs. 6.5 million will be disbursed in the initial phase, benefiting 25 entrepreneurs, each representing a distinct district. The recipients will operate under a favourable three-year payment period, subject to an annual interest rate of 6%.

The distribution of award letters took place at the Ministry of Industry, orchestrated under the astute guidance of Industry Minister Dr. Ramesh Pathirana yesterday. 

The initiative finds its roots in the Industrial Development Act No. 36 of 1969, enforced by the Ceylon Industrial Development Board. 

After a hiatus of 54 years, the IDF was recently unveiled at BMICH during the National Industry Week, led by Minister Pathirana. Its inauguration was marked by an initial balance of Rs. 10 million, a figure that has since grown to an impressive Rs. 15 million. Anticipations are set high, with projections indicating an escalation to an unprecedented Rs. 1 billion by next year.

During the event, the Minister articulated his vision of bolstering the IDF, ensuring accessibility for all MSMEs by the following year. 

Dr. Pathirana also shed light on the bureaucratic challenges faced by industrialists in conventional banking channels, leading many to seek loans through informal means, a situation he vows to address.

The Minister extended his gratitude to the IDB for their relentless efforts in elevating Sri Lanka’s micro, small, and medium-scale industries. 

Regional Development Bank Chairman Susantha Silva emphasised the bank’s unwavering commitment to fostering the growth of the micro, small and medium-scale industries economy. He stressed the critical importance of business discipline in this endeavour. 

Among the distinguished attendees were Industry Ministry Secretary Thilaka Jayasundara, IDB Chairman Dr. Saranga Alahapperuma, IDB Director Renuka Jayalath, along with officials from both boards, representatives of the RDB, industrialists, and various stakeholders.