Fresh support for SMEs

Cabinet this week gave approval to establish a national institution to facilitate small and medium enterprises to obtain loans through providing long-term debt securities, Cabinet briefing notes published by the Government Information Department revealed. 

The proposal made by Finance Minister Mangala Samaraweera to establish the National Debt Securities Institution to provide debt securities for SMEs obtaining long-term loans from banks for new investments was approved by Cabinet. 

Currently there is no national mechanism to provide long-term debt securities for SMEs.

 As a result SMEs face difficulties in obtaining loans for investment from financial institutions. The new establishment will seek to bridge this gap. 

The institution will be established as a limited liability company under the provisions of the Companies Act, the briefing notes said. (CD)