Govt. initiates 500 production villages, supports 200,000 self-employees and start-ups

• Production villages to contribute Rs. 18 b to economy next year

The Government yesterday said efforts to set up 500 production villages and assist 200,000 self-employed businesses and start-ups countrywide are progressing well.  

The ‘Saubhagya Production Villages’ program, which focuses on building an economic link between remote communities and the city, is expected to establish 500 manufacturing villages and financially assist 200,000 under the ‘Self-Employment Empowerment’ program.  

Samurdhi, Household Economy, Micro Finance, Self-Employment, Business Development and Underutilised State Resources Development State Minister Shehan Semasinghe said yesterday that around 110,000 people had already been identified for the benefits under the program. 

He made these remarks on a webinar titled: ‘How to help the Home Economy and Self-Employment Promotion to Solve Economic Problems Caused by the Corona Epidemic,’ organised by the Department of Government Information.

The State Minister said that the selection was made based on the recommendations and investigations of the Government agencies relevant to the business sector of the self-employed. Samurdhi recipients, low-income earners and those in small businesses were selected for this purpose. 

He said the program was already being implemented successfully. It includes financial assistance, training opportunities and industry know-how for the selected beneficiaries.

The other major program is the ‘Production Villages Program’ implemented by the Saubhagya Development Bureau. 

Semasinghe said the mission is to promote products traditionally isolated in the village across the bridge to the urban market, or even further to the export market. 

Under this project, 500 villages will be developed in two phases. Incentives will be offered to encourage increased output, and efforts will be made to boost revenue. The Government will grant Rs. 10 million for a single village, allowing each manufacturer to purchase the equipment required individually or for the village in general. 

The program is expected to add Rs. 2 billion to the national economy by the end of the year. Also, the monthly income of one manufacturer is expected to exceed Rs. 30,000. Some projects in the manufacturing villages take about two years to reap the benefits. So far, about 50,000 manufacturers have applied for this. These manufacturing villages are expected to add about Rs. 18 billion to the national economy by next year.

When selecting these manufacturing villages, additional consideration was given to communities whose households already supply the same commodities individually or in clusters. 

Commenting on the Samurdhi movement, the State Minister said that steps would be taken to identify and uplift those who can become better economically. 

He also said that the Samurdhi Bank network consisting of about 1,100 branches would be modernised and upgraded to suit the current financial needs in a more people friendly manner.

“The initiative will also save the rural people from the microcredit sharks that many of them are suffering from. The Samurdhi Bank network will continue to offer new assistance to the rural population by providing concessional loans with very low interest rates and friendly services,” he added.

All of these activities are carried out under the full supervision of the District Secretary. Selection of villages, identification of beneficiaries, coordination, supply of amenities, and continuation are all made under the direction of the district’s Planning Director and with the Divisional Secretary’s guidance. It is assisted by Grama Niladharis, Agricultural Research Production Assistants, Development Officers, and Samurdhi Officers. 

The follow-up process will be conducted in parallel. 

Under the Saubhagya Production Villages program, production villages have been identified, covering all districts of the country. Nearly 98% of the proposed projects covering 14,012 Grama Niladhari Divisions have been approved. The total allocation of these projects is Rs. 5 million. 

The State Minister said that his Ministry would continue to implement these programs amid the pandemic, stressing that the only viable option was to increase domestic production and strengthen the national economy in the face of the challenges the country is facing.