National Development Bank PLC Introduces Specialised Tourism Sector Auto Loan Scheme

Strategic Insights -

The National Development Bank PLC (NDB) has launched a new auto loan scheme specifically designed for the tourism sector in Sri Lanka. This initiative is aimed at supporting the revival and growth of the country's tourism industry by providing affordable transport solutions to tour operators, hotel shuttle services, and other transport providers. The scheme offers loans of up to Rs.25 million with a competitive interest rate of 7 percent per annum and repayment periods extending up to seven years. The goal is to provide long-term, structured support to businesses driving tourism in Sri Lanka, thereby contributing to the national economy.

Key Takeaways:

  • The NDB's specialised tourism sector auto loan scheme provides financing for brand-new or reconditioned unregistered motor coaches with loans of up to Rs.25 million.
  • The scheme offers a highly competitive interest rate of 7 percent per annum and repayment periods extending up to seven years.
  • Eligibility for the scheme is extended to formally registered tourism enterprises as well as businesses, ensuring accessibility for a broader spectrum of industry participants.
  • Applicants must be Sri Lankan citizens with a sound project cash flow, repayment capacity, and a clear contribution to the revival of the sector.
  • The scheme is aligned with the national objectives for economic recovery and tourism development, with initial eligibility clearance coordinated through the Industries Ministry and other regional arms.
  • NDB Assistant Vice President Leasing Dilum Amarasinghe stated that the scheme will support the industry's resurgence and contribute to the broader economic revival of the nation.

Statistics:

  • Loans of up to Rs.25 million are available for brand-new or reconditioned unregistered motor coaches.
  • The interest rate is 7 percent per annum.
  • Repayment periods extend up to seven years.
  • The scheme targets tourism operators, hotel shuttle services, and other transport providers within the tourism value chain.

Sources:

Wanni, C. N. (2023). National Development Bank (NDB) PLC. National Development Bank PLC.