Concessionary loan scheme for SMEs

President and Finance Minister Ranil Wickremesinghe yesterday announced a concessionary loan scheme to boost Small and Medium Enterprises (SMEs).

Presenting the 2024 Budget, the President told Parliament that SMEs have been badly affected by the economic crisis and COVID-19 pandemic. A recent survey revealed that about 20% of such enterprises have either temporarily or permanently closed down. The survey also revealed a decrease in the performance volume of the currently operating enterprises. 

“We want to fast track the journey towards a production economy. Therefore, SMEs should be further strengthened, encouraged and facilitated,” Wickremesinghe said. 

For this purpose, the President announced a concessionary loan scheme of around Rs. 30 billion with the support of the Asian Development Bank. The required provisions have already been included in the Budget 2024. Accordingly, the total amount allocated for the development of SMEs is Rs. 50 billion. As a result, a financial space worth around Rs. 250 billion is created.

The President said this program is the first phase of action which will collectively provide a major impetus to the SMEs. In addition to concessionary credit facilities, capacity development programs are implemented for the participating institutions. Steps will be taken to link SMEs with the value chains of large companies in the industrial sector, the President added.