Sri Lanka offers cheap credit for small and medium entrepreneurs

November 16, 2006 (LBO) – Sri Lanka is offering a 13.295 billion rupee credit line on concessionary terms to develop small and medium scale industries, President Mahinda Rajapakse said Thursday. He said over 100,000 such industries will be eligible to tap the funding line with interest payments spread between 6.5 percent to 14.0 percent.

Sectors eligible includes: agriculture, fisheries, livestock, renewable energy, ornamental fish, textiles, construction, coconut coir and environment.

Those vying for cheap credit should employ under 149 people, while their asset value (excluding land and buildings) should not exceed 50 million rupees, Rajapakse said during his 2007 budget speech. State run Lankaputhra Development Bank will disburse the funds through commercial and development financial institutions.

click to read the Budget 2007 speech: