Enterprise Sri Lanka to create 100,000 entrepreneurs: Mangala

Enterprise Sri Lanka aims to create 100,000 entrepreneurs by 2020 supported by 16 special loan schemes,  Finance Minister Mangala Samaraweera said yesterday as the Government gears up to roll out the Rs. 5.2 billion program on 21 June. 

Speaking during a workshop to educate banking professionals Samaraweera pointed out the need for Sri Lanka to develop a comprehensive entrepreneurship structure that encourages people, especially graduates to embark on building their own businesses. He pointed out that many other countries have developed programs specifically targeted at grooming entrepreneurs, which has boosted growth and created job opportunities for rural communities. The program will be launched later this month with the participation of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. 

“In Sri Lanka, we still have as few as 25,000 youth gaining public university admission every year. Even though many others resort to private universities and vocational training, there is still a gap regarding entrepreneurship. 

We have to change this trend and enable young people to use their creativity and new technology to find new growth paths for the economy,” the Finance Minister said. 

Samaraweera called on banks to support entrepreneurs by engaging more holistically with them, including formulating businesses plans and conducting feasibility assessments as many entrepreneurs may lack the ability to come with comprehensive plans to banks. He also advocated that banks should proactively seek out entrepreneurs and attempt to provide solutions to their capital requirements. The role of banks would need to evolve from taking deposits and giving out consumption-related loans to supporting entrepreneurs. He also stressed the need to establish an entrepreneur window in State banks such as People’s Bank and Bank of Ceylon, as well as regional development banks to cater to entrepreneurs.  

“As many as 100 loan schemes currently offered by banks would be restructured under this ‘Enterprise Sri Lanka’ program. It is estimated that about 150,000 youth are unemployed in Sri Lanka. These people are prey to extremist organisations, drugs and the underworld because they feel that they are not capable to lead productive lives. We must show them that that is not the case, and that we are ready to assist them in becoming worthwhile citizens,” the Minister added. 

Samaraweera also outlined special provisions for female entrepreneurs, pointing out that they would be given special consideration. If ten people or more begin a business and half of them are women, then they would be given an additional 10% relief in interest rates. Differently abled people would also be given similar concessions with interest rate relief. 

“When we talk of entrepreneurship for women, they are often just given sewing machines. But, women have the same capacity as men to start, manage and expand a business. Yet there are shortages in opportunities open to them, and we must change that and empower women to take their rightful place in our economy,” he stated.