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| Sunday, 3 April 2005 |
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SME Bank to boost economic development Finance Minister Dr Sarath Amunugama opened the first SME Bank on Wednesday. It was initiated by the government as a budget proposal to provide finances to micro, small and medium enterprises. It was set up with a capital of Rs 5 billion. The bank approved by the Central Bank is incorporated under the Companies Act as a Public Limited Liability Company. It will function as an independent commercial enterprise. Seven members will be on the board. Already four members have been appointed including Dr Bandula Perera Acting Chairman, Lal Kumara Gamage, Rohan Tudawe and Rohantha Athukorala. This is the first bank to come under the Ministry of Advanced Technology and Enterprise Development. The office will be at Level 29, WTC Colombo 1. The priority sectors of the bank are advanced technology, software and business process outsourcing, technology improvements, fisheries, gems and jewellery, agri based industries, services sector and SME lending. The main features of lending are simplified procedures, concessionary rates of interest and reduced dependency on collateral. Dr Amunugama said the newly established bank would help the SME sector improve the economic development of the country. At present most SME sector companies find it difficult to obtain loans from banks due to high interest rates and the requirement of collateral. The new bank will assess each project and help the sector to develop thereby reducing the unemployment rate in the country. He said the government is now looking at an economic growth rate of 8 percent and sustain it. This can be done by reducing the unemployment rate and poverty. The target is not impossible as most countries in the region have achieved it and the setting up of the SME Bank is a step in that direction. Minister of Advanced Technology and Enterprise Development Rohitha Bogollagama said the bank will assist the SME sector to improve the economic development of the country. The mission of the bank is to improve people's living conditions by creating opportunities in small and medium businesses supporting and developing the SME sector by providing financial and technical assistance on a sustainable basis enabling the SME sector to contribute to economic development through adherence to high standards of institutional integrity. |
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