Press briefing of Cabinet Decision taken on 2024-02-26 (Subject to Confirmation at the next Meeting)

Stimulating Loan Scheme for Re-energize the Micro, Small and Medium-sized Enterprise Sector

- As a result of the prevailing economic downturn and due to the impact of external factors beyond their control, a significant number of small and medium scale entrepreneurs associated with manufacturing, imports, exports, tourism, apparel, and a variety of other commercial operations have found it very difficult to sustain their enterprises. As a relief for that, the Asian Development Bank has agreed to provide working capital support for small and medium scale enterprise sector. Through the proposed program it is expected to grant loan facilities on concessional interest rates to small and medium scale enterprises in order to further expand and recover their businesses, through Licensed Commercial Banks and Licensed Specialized Banks. Rs.20 billion is expected to allocate for the said project which is comprised of two components and out of which, Rs.15 billion will be utilized to strengthen existing and new enterprises whereas remaining Rs.5 billion will be utilized to support businesses under the non-performing loan category. As such, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to implement the proposed loan scheme, was approved by the Cabinet.