Press briefing of Cabinet Decision taken on 2023-10-23

Implementation of Enhancing Small and Medium-sized Enterprises Finance Project

- With the financial assistance of the Asian Development Bank amounting to US$ 165 million, the Government has implemented the 'Small and Medium sized Enterprises Line of Credit Project' to provide investment and working capital loans to small and medium sized entrepreneurs, at concessionary interest rates. Also, the necessary steps have been taken to establish the National Credit Guarantee Institution as a solution to the issues faced by small and medium sized entrepreneurs, owing to the banks giving priority to collateral‑based lending rather than cash flow‑based lending. The Government has planned to implement a new project called 'Enhancing Small and Medium‑sized Enterprises Finance Project' for entrepreneurs who have found it more difficult to secure funds for their businesses, and for the purpose, the Asian Development Bank has agreed to provide funds of US$ 100 million. Accordingly, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to obtain the said loan and to enter into related agreements, was approved by the Cabinet.