$100m ADB credit line for SMEs

Cabinet yesterday approved a $100 million Line of Credit for Small to Medium Enterprises from the Asian Development Bank (ADB). 

 The Ministry of Finance has entered into a loan agreement to obtain a loan of $ 100 million from the ADB to strengthen the Small and Medium scale enterprises by granting them loan facilities. Loans will be granted to launch an enterprise or to expand an existing enterprise subject to a maximum of Rs. 50 million and a repayment period of 10 years. 

The proposal made by Finance Minister Ravi Karunanayake, to implement the loan scheme and enter into agreements with participatory financial institutions, was approved by the Cabinet of Ministers.