Oct 16, 2018

Are Enterprise Sri Lanka loans for existing entrepreneurs? Featured

The Finance Ministry’s Enterprise Sri Lanka programme plans to give loans to around 100,000 new entrepreneurs, but most of the beneficiaries so far are said to be those who have already been doing businesses.

It has disbursed loans to around 26,000 persons up to now.

A top official of the ministry told Sri Lanka Mirror that the programme would not be able to achieve its said objectives fully.

He said that when granting loans other than housing loans, certain conditions were laid down, but that most were unable to meet them.

Existing entrepreneurs submitted proposals for expansions or for undertaking new products, for whom the loans were given.

The credibility they have cultivated with banks enabled the easy disbursement of the loans, said the official.

According to him, the notion in the country’s business fraternity is against undertaking a new venture.

They should have the ability to face challenges, with the government mediating to minimize any risks, he said.

Still, the depreciation of the rupee, unbearable taxes etc. are coming in the way of new ventures.

The official said however, they would continue to grant loans on the basis of the initial success.

Accordingly, the interest free loan of Rs. 1.5 million for graduates will be given to NVQ 5, 6 and 7 qualified and Rs. 3.5 million for day care centres with NVQ 4 qualifications.