Govt. moves to boost women’s economic participation via Rs. 2 b special loan scheme

Wednesday, 3 July 2024 00:02 - - {{hitsCtrl.values.hits}}

The Government has decided to allocate Rs. 2 billion of the Rs. 20 billion special loan scheme to eliminate financial barriers and empower women in the Micro, Small and Medium Enterprises (MSMEs).

The move follows a Cabinet decision on 26 February, where the Government allocated Rs. 20 billion to reinvigorate the enterprise sector.

The Cabinet of Ministers on Monday approved implementing the special loan scheme that is expected to provide much-needed support to women entrepreneurs, helping them overcome the barriers that have traditionally impeded their financial independence and economic contribution.

“Despite Sri Lanka’s efforts to foster economic growth, women’s participation in the country’s economic activities remains lower compared to regional and Asian countries,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said.

Speaking at the weekly post-Cabinet meeting media briefing he cited a 2022 survey of Sri Lanka’s workforce, where women comprise 35% of the economically active population, highlighting a significant gender disparity in economic participation.

“Various factors contribute to this disparity, including limited access to financial resources. Women often face challenges such as restricted financial literacy and the lack of property or security needed to obtain loans, which hinders their ability to become successful entrepreneurs,” he added.

Gunawardena said the initiative is part of a broader strategy to strengthen the enterprise sector and boost economic resilience in the country. “As the country continues to recover from recent economic challenges, including the impacts of the COVID-19 pandemic and other financial crises, empowering women to participate more actively in the economy is seen as a crucial step towards sustainable development,” he explained.

He said the funds will be distributed via Economic Development Bureaus within Provincial Councils. “With this targeted support, the Government intends to narrow the gender gap and see an increase in women’s economic participation, contributing to the overall growth and stability of the economy,” he added.

The proposal to this effect presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister was approved by the Cabinet of Ministers.