A comprehensive package of financial facilities was introduced today to revitalize micro, small, and medium-scale enterprises (MSMEs) in Sri Lanka.

The package, which includes both investment and working capital facilities, was launched under the patronage of President Ranil Wickremesinghe at the Presidential Secretariat. 

According to the President’s Media Division (PMD), the following are the key factors of the newly introduced package of financial facilities for MSMEs.

• Fifteen Participatory Financial Institutions, including Licensed Commercial Banks and Licensed Specialized Banks, are offering these loans at subsidized interest rates. This initiative is designed to support MSMEs that have maintained operations despite the ongoing crisis.
• The loans are provided under two main categories: support for MSMEs and assistance for MSMEs with non-performing loans. The Ministry of Industries will issue recommendation letters to eligible MSMEs that require financial support and have the potential to upgrade their businesses to the next level.
• Under the Micro, Small, and Medium Enterprises Strengthening Investment Loan scheme, loans are available at a concessional interest rate of 7% for a period of 10 years, with a maximum limit of Rs. 15 million. A total of Rs. 13 billion has been allocated for this scheme.
• For MSMEs under the non-performing loans category, a working capital loan of up to Rs. 5 million is provided for a period of 5 years at an interest rate of 8%. The total allocated amount for this initiative is Rs. 5 billion.
• The participating financial institutions include the Bank of Ceylon, People’s Bank, Regional Development Bank, State Mortgage and Investment Bank, Hatton National Bank, Seylan Bank, Sampath Bank, Commercial Bank, DFCC Bank, National Development Bank, Nations Trust Bank, Sanasa Development Bank Limited, Union Bank, Pan Asia Bank, and Cargills Bank.

Speaking at the event to introduce the package, President Ranil Wickremesinghe emphasized that strengthening MSMEs is crucial for the country’s progress. He highlighted that small and medium-scale entrepreneurs were the most affected by the recent economic collapse in Sri Lanka, and the government is prioritizing their recovery. The President also announced the establishment of a National Development Bank to provide necessary capital to MSMEs.

Additionally, President Wickremesinghe mentioned efforts to attract foreign investments to support large-scale entrepreneurs and outlined the government’s programs aimed at uplifting the common people of the country.

This new credit scheme aims to enhance the resilience of MSMEs as they recover from the economic crisis and navigate risks stemming from changes in the business environment, including climate change. Special attention is given to sectors such as agriculture, tourism, manufacturing, technical and export-oriented industries, and women-led MSMEs (excluding trading, leasing, and business rental) that require working capital financing.

The scheme also supports the government’s objective of securing foreign exchange and transforming the economy from an import-dependent model to an export-driven one. (Newswire)

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The government has decided to provide financial assistance to help people clean their flood-hit houses.

State Minister of Defence Premitha Bandara Tennakoon said the government will provide Rs.10,000 per family for this purpose.

Several areas in Sri Lanka are inundated due to the adverse weather conditions experienced in the country.

According to the Disaster Management Centre (DMC), a red alert for major floods has been issued to the Millakanda area due to the Kalu Ganga.

Amber alerts for minor floods have been issued to the Putupaula area due to the Kalu Ganga, the Baddegama area due to Gin Ganga, and the Thalgahagoda area due to Nilwala Ganga. 

Meanwhile, yellow alerts have been issued to the Ellagawa area due to the Kalu Ganga and the Panadugama area due to the Nilwala Ganga. 

As per the DMC report issued this afternoon, the water levels in some areas are receding and most other areas have returned to normal. (Newswire)

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The European Union has allocated €100,000 to provide emergency humanitarian assistance to families affected by the floods that recently struck large parts of Sri Lanka. 

Issuing a statement, the EU said the aid will benefit close to 15,000 people in the worst-hit localities in Sabaragamuwa, Southern and Western provinces. 

This EU funding supports the Sri Lankan Red Cross Society (SLRCS) in delivering emergency relief items, including drinking water, clothes, bed sheets and mosquito nets. In addition, affected families will receive cash grants to enable them to meet their basic needs. The assistance will also focus on cleaning up flooded areas and wells while delivering hygiene promotion campaigns. Medical camps will be set up to assist those injured in the wake of the floods.

The funding is part of the EU’s overall contribution to the Disaster Response Emergency Fund (DREF) of the International Federation of Red Cross and Red Crescent Societies (IFRC).

The southern part of Sri Lanka started experiencing a series of strong monsoon rains in early October, causing floods and landslides that affected more than 75,000 people in 13 districts. As a result of the continued downpours and strong winds, a number of houses, agricultural lands and crops in low-lying areas were damaged.  Major traffic arteries in several districts were cut off by fallen trees. The floods left many drinking water resources contaminated. 

The worst affected areas were the coastal districts of Galle, Gampaha and Matara, with most parts flooded for more than a week. (NewsWire)

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