Sri Lankan MSMEs have welcomed the decision of the new government led by Prime Minister Mahinda Rajapaksa to extend the bidding deadline for loan infusion. at a time where those entrepreneurs facing difficulties due to Covid-19 lockdowns,
The government’ has infused life support to MSMEs by giving working capital loans at 4% interest. but logistic disruptions, many MSMEs were unable to join this scheme.
Realizing their plight ,the new administration will be extending the Saubagya deadline which is a critical relief by itself” said the President of Sri Lanka’s Confederation of Micro, Small and Medium Industries (COSMI) Nawaz Rajabdeen Today (Tuesday 25).
“The supply chains and cash-flows of MSMEs have been severely disrupted by COVID19 lockdowns. After lockdowns, MSMEs in sectors such as apparel, processed foods, and handlooms are making a slow comeback while MSMEs in other sectors such as tourism and footwear and leather may take more time.
Therefore MSMEs laud the Central Bank for extending the application deadlines for 4% working capital loan relief” Rajabdeen said.
The loans, to be granted under the Saubhagya (Prosperity) Loan Scheme as a ‘Saubhagya COVID 19 Renaissance Facility’ will be made available to MSMEs in manufacturing, services, agriculture, construction, self-employment businesses and individuals and the businesses in the sectors of tourism, exports and related logistics suppliers.
Financial institutions are to grant a working capital loan facility to eligible performing and non-performing borrowers not exceeding two months’ working capital requirement and to be repaid over two years at an interest rate equal to 4% p.a.
Accordingly, COVID-19 affected businesses and individuals can submit their loan applications under the Saubagya COVID-19 renaissance facility to respective licensed banks until 30th September 2020” the Central Bank announced on August 21.
(LIN)