By Sarah Hannan
The Ministry of Youth and Sports is under discussion with the Central Bank of Sri Lanka (CBSL) to provide low-interest business loans through state banks to youth planning to start small enterprises.
Minister of Youth and Sports Namal Rajapaksa, speaking to The Morning, said: “During my recent visit to the Northern Province, I came across youth groups who informed me of the difficulties they face when applying for business loans. The Ministry, through its Small Enterprise Development (SED) Division, has initiated discussions with the CBSL to design a SED loan scheme that will help the youth of Sri Lanka obtain financial support without hassle.”
Rajapaksa stated that at present, banks, both private and state, require several documentation requirements that need to be fulfilled. Moreover, the interest on these loans is very steep and can become unbearable for small enterprise owners to pay.
“The Ministry will allocate sufficient funds to establish the SED loan scheme through the 2021 Budget, so that the youth will have easy access to obtain business loans. In addition to that, we are also discussing the possibilities of acquiring the loans that startups have obtained through private banks to state banks, and providing them with relief interest rates for those loans, to ease off their burden of repayment,” Rajapaksa elaborated.
The loans are to be made available in the first quarter of 2021.
Minister of Youth and Sports Namal Rajapaksa, speaking to The Morning, said: “During my recent visit to the Northern Province, I came across youth groups who informed me of the difficulties they face when applying for business loans. The Ministry, through its Small Enterprise Development (SED) Division, has initiated discussions with the CBSL to design a SED loan scheme that will help the youth of Sri Lanka obtain financial support without hassle.”
Rajapaksa stated that at present, banks, both private and state, require several documentation requirements that need to be fulfilled. Moreover, the interest on these loans is very steep and can become unbearable for small enterprise owners to pay.
“The Ministry will allocate sufficient funds to establish the SED loan scheme through the 2021 Budget, so that the youth will have easy access to obtain business loans. In addition to that, we are also discussing the possibilities of acquiring the loans that startups have obtained through private banks to state banks, and providing them with relief interest rates for those loans, to ease off their burden of repayment,” Rajapaksa elaborated.
The loans are to be made available in the first quarter of 2021.