Press briefing of Cabinet Decision taken on 2017-07-25

Establishment of a National Credit Guarantee Institute for Small and Medium Scale Entrepreneurs

- The small and medium scale entrepreneurs face various difficulties in obtaining funds for new investment needs due to the absence of a national level methodology to provide long term credit guarantees to such entrepreneurs. As such, the proposal made by Hon. Mangala Samaraweera, the Minister of Finance and Mass Media, to establish the 'National Credit Guarantee Institute' as a limited public company under the provisions of the Companies Act, to provide the credit guarantees required for obtaining loans from the banks for new investments by the small and medium scale entrepreneurs, with a view to providing a sustainable solution to the problem, was approved by the Cabinet.