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Economic development

Sri Lanka Approves Concessional Loan Scheme to Support 50,000 Young Entrepreneurs

Strategic Insights

— 1 min read

The Sri Lankan government has announced a significant initiative to support young entrepreneurs in the agriculture and industry sectors. The Cabinet of Ministers has approved a concessional loan scheme at a 4% interest rate to facilitate the development of 50,000 young entrepreneurs over the next five years. The loan scheme, proposed by Agriculture, Livestock, Land, and Irrigation Minister K.D. Lalkantha, aims to provide a maximum loan facility of Rs. 5 million per beneficiary.

Key Takeaways:

  • The Cabinet of Ministers has approved a concessional loan scheme to support 50,000 young entrepreneurs in the agriculture and industry sectors over the next five years.
  • The loan scheme, rolled out with the Bank of Ceylon, People's Bank, and Regional Development Bank, will offer a maximum loan facility of Rs. 5 million per beneficiary at a 4% interest rate per annum.
  • The scheme aims to address the lack of concessionary financial facilities, which has been identified as an obstacle to grooming entrepreneurs in the agriculture sector.
  • The government has allocated Rs. 500 million for the development of entrepreneurs in the agriculture and industry sectors through the 2025 Budget.
  • The loan scheme is expected to encourage investments, reduce uncultivated lands, and increase food production in Sri Lanka.
  • The program will be implemented in collaboration with the three participating banks, providing entrepreneurs with access to much-needed financial support.
  • Minister Dr. Nalinda Jayatissa has emphasized the importance of this initiative, stating that it will help to attract young entrepreneurs to the agriculture sector and promote the country's economic development.

Statistics:

  • 50,000 young entrepreneurs in the agriculture and industry sectors will benefit from the concessional loan scheme over the next five years.
  • Rs. 5 million will be the maximum loan amount per beneficiary.
  • The interest rate for the loan scheme is 4% per annum.
  • Rs. 500 million has been allocated by the 2025 Budget for the development of entrepreneurs in the agriculture and industry sectors.
  • The loan scheme will be implemented through collaboration with the Bank of Ceylon, People's Bank, and Regional Development Bank.

Sources:

  • Wijeya Newspapers Limited (2022)

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