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| Sunday,13 November 2005 |
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| News Business Features Editorial
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SME Bank spreads its wings by L.S.A. Wedaarachchi The newly established SME Bank, the nation's enterprise Bank for small and medium-scale entrepreneurs, is spreading its wings all over the island. Two branches have been set up in Kandy and Galle and ninety-three SME windows will be established in National Savings Bank (NSB) branches in the near future. More than one-thousand entrepreneurs in the SME sector have sought assistance from the SME Bank forwarding their business plans with loan applications. Their prime objective is to obtain loans from the SME Bank to commence operations or to uplift the existing capacity of their enterprises. The SME Bank which comes under the purview of the Ministry of Advanced Technology and National Enterprise Development, commenced operations last June and the Treasury funded Rs. 5,000 million to the SME Bank to commence operations. One of the prime objectives of setting up the SME Bank by the UPFA Government was to build a new entrepreneur power backing the village and urban based small and medium level businessmen and industrialists. The higher interest rates, ill-treatment of Commercial banks and lack of financial and technological knowledge were longstanding grievances of the SME sector. Minister of Advanced Technology and National Enterprise Development Rohitha Bogollagama told a meeting of small and medium scale industrialists organised by the SME Alliance that his desire was to encourage the SME sector by providing all financial help and other assistance. In spite of the higher interest rates of Commercial banks the SME Bank's target is to bring down the interest rates for SME loans up to four per cent, he said. The present interest rate for loans of the SME Bank is between 7 1/2 - 11 per cent. The series of concessions including the import of machinery without tax and financial assistance to explore foreign markets has been already given to the SME sector, the Minister said. According to the Chief Executive Officer of the Bank, Uditha H. Palihakkara, the SME Bank has already identified the important small and medium-scale industries which can be revived to help in the expansion of the national economy. The Paddymill Industry, Gem Cutting and Polishing and Jewellery Industry, Wooden Furniture Industry, Educational aid and Toy Industry and Industrial and Professional Services are some of those earmarked, he said. He said that the loan facilities to purchase and import new machinery as well as to modify and expand factories are being given to the SME sector. The SME Bank will provide financial and technological knowledge to potential businessmen and industrialists. The SME Bank is at the DHPL Building at Navam Mawatha, Colombo 2. |
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