Colombo (LNW): The Cabinet has given the green light to forge relevant agreements linked to the upcoming “Enterprise Growth Finance Initiative” for small and medium businesses.
Originally, the “Enterprise Credit Strategy Initiative” was launched, supported by a $165 million fund from the Asian Development Bank.
This initiative aimed to offer both investment and working capital loans to small and medium businesses at preferential interest rates.
Given that many banks focus more on secured lending rather than lending based on cash flow, this has posed challenges for SME owners.
In response, the government initiated the National Credit Protection Institute.
However, recognising the continued financing struggles of entrepreneurs, the government is now rolling out the “Enterprise Growth Finance Initiative”.
For this initiative, the Asian Development Bank has pledged financial backing worth $100 million.
Consequently, based on the recommendation by the President, who also holds the Finance Minister portfolio, the Cabinet has endorsed the motion to procure this loan and formulate the necessary agreements.
