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| Sunday, 6 March 2005 |
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SME Bank gets under way by end March by Surekha Galagoda The Jathika Viyavasayaka Bankuwa or the SME bank initiated as a budget proposal to give a fillip to the SME sector will be launched for structured operations by the end of this month. The government will provide Rs 5 billion as capital and we have already received Rs 2 billion, said Minister of Advanced Science and Technology and National Enterprise Development Rohitha Bogollagama. The bank will have seven members on the director board and the bank will be linked to every location in the country and cater to the requirements of the SMEs in the country. Minister Bogollagama said the bank will function with less overheads as a bank of virtual reality but it will be at anybody's doorstep if an entrepreneur requires the services. Speaking of collateral, he said that loans will be given on the strength of the project but definitely away from the traditional instruments. The bank will have the capacity to operate as a savings bank, development bank and also generate funds through lotteries to develop the SME sector. Secretary to the Treasury and Ministry of Finance Dr P.B.Jayasundera looked into several aspects when incorporating the bank because he wanted to link the bank to a progressive economy. As seen during the last three months the SME sector has received a greater focus. The government has initiated an Export Overseas Market Development program under the EDB where we encourage the SMEs to be linked to the world. In addition we have also launched the Dahas Diriya program for exporters which is a Rs one billion incentive scheme. The scheme offers cash incentives as well as product related incentives for exporters. The ministry will introduce the Advanced Technological Investment Incentive Scheme on March 15. Under this scheme all plant, machinery, equipment and other related items will be exempt from import duties totally. This scheme will be introduced to match our finished goods with the highest standards found in the world so that the beneficiaries will be quality conscious foreign consumers. This will result in a potential investment class. The ministry has already extended the SME and micro finance schemes under the Suhanya loan scheme to Rs 5 billion. The investment scheme has been subscribed to the tune of Rs 3 billion..
The ministry is getting assistance from the treasury to implement the
scheme. This scheme will also enhance investor confidence in Sri Lanka's
economy. |
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