Sri Lanka Govt introduces more loans for 3-wheel owners and migrant workers

Jan 28, 2019 (LBO) – The Finance Ministry under the Enterprise Sri Lanka concessionary loan scheme is to introduce further concessionary loans to widen the schemes enabling the stake holders to move towards next generation economic activities in their areas of activities.

Accordingly migrant workers will be given up to 10 million rupees concessionary housing loans to be repaid in 15 years with two year grace period.

“It has been perceived that the dream of many of the migrant workers is to have their own house. But due to lack of proper guidelines and financial management it has made it impossible for them,” the Finance Ministry said in a statement.

“According to the new scheme proposed, those migrant workers who have registered under the Foreign Employment Bureau will have to  save a considerable amount of their remittance in a local bank and the 75 percent  of the interest rate will be borne by the government through Treasury.”

Another novel scheme introduced is to provide concessionary loan up to two million rupees to three wheel owners to convert to a safer and comfortable mini taxi service with small cars.

The government will bear 75 percent of the interest rate and the three-wheel owners, who operate their own three wheelers and who are above 35 years of age are entitled to this concessionary loan,

A proposal made by the Minister of Finance and Mass Media Mangala Samaraweera to expand the already approved loan schemes to cover more areas was approved by the Cabinet of Ministers last week.

The Enterprise Sri Lanka concessionary loan scheme introduced under Budget 2017 and 2018 has been a huge success.

The self employed, Women entrepreneurs, small and medium entrepreneurs have so far been registered for various loan schemes up to 65 billion rupees  via state and private banks and the loan worth Rs 36 billion have been disbursed to over 34,500 personnel.

Self employed, farmers and even the journalists are given interest free from under this.

As Sri Lanka is fast reaching a country where its ageing population is on the increase the Minister of Finance Mangala Samaraweera has proposed to introduce another loan scheme of providing Rs 10 million with 75 % interest concession to construct elderly care centres as the private sector investment.