The “Small and Medium Enterprise Development Finance Project,” a new initiative to be introduced by the Sri Lankan government, will receive $100 million from the Asian Development Bank (ADB).
As a result, on Monday, October 23, the Cabinet of Ministers adopted a proposal made in this respect by President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation, and National Policies.
The project intends to assist small- and medium-sized business (SMEs) owners who are having trouble raising capital for their operations.
The creation of a “National Credit Protection Institute,” through which banks will emphasise asset-based lending over cash-flow-based lending and allow for less rigidity, was also agreed upon.
The ‘Small and Medium Enterprise Credit Scheme Project’ was initially launched by the Sri Lankan government with funding assistance totaling USD 165 million from the ADB to offer SMEs working capital and investment loans at subsidised interest rates.