Govt launches stage II of self-employment scheme

By Gamini Warushamana

The Government has launched the second stage of the self-employment loan scheme for socially reintegrated ex-LTTE cadres, with the allocation of Rs. 525 million as interest subsidy, said the Chairman of the Rehabilitation Authority (RA) E.A. Samarasinghe.

Samarasinghe said that the Cabinet paper presented by President Mahinda Rajapaksa as Finance Minister has been approved and the loan scheme is being implemented under the supervision of Rehabilitation and Prison Reforms Minister Chandrasiri Gajadeera. The Rehabilitation Authority is the implementing agency.

Under the loan scheme, a rehabilitated person will receive a loan up to maximum Rs. 250,000 at 4 percent interest. The repayment period is 10 years. Three banks, the Bank of Ceylon, the Peoples Bank and the Sri Lanka Savings Bank facilitate the program using the bank's own funds and they get 8 percent interest subsidy from the Treasury. Under stage two, 3,500 beneficiaries will receive loans.

Samarasinghe said that stage one of the program was successful and according to a study conducted by RA over 74 percent of the livelihood projects started by the beneficiaries were successful.

During stage one of the program, the government provided around Rs. 300 million for 1,549 beneficiaries under the same methodology and the Treasury provided 8 percent interest subsidy.

The Central Bank, after a study of the program, has assured that the loan program is market-oriented, economically viable and commercially sustainable, he said.

The loans are issued for livelihood development projects such as the production of goods and services that have a proved market demand.

RA holds skill development programs for the beneficiaries. Under stage two of the program Rs. 25 million has been allocated for skill development programs of the rehabilitated people and the loans will be issued on the same conditions as stage one.