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NDB Bank ‘s ‘Re-Energizer’ Loan to Empower MSMEs at 7% Interest Rate

July 11, Colombo (LNW): Sri Lanka is launching a 20 billion rupee loan scheme to be disbursed via banks for small and medium enterprises (SMEs) impacted by the economic crisis, with assistance from the Asian Development Bank.

The scheme will allocate 15 billion rupees to new and existing businesses, while SMEs with non-performing loans will receive the remaining 5 billion rupees. These loans will be provided through licensed credit institutions, which will release detailed statements soon.

The Economic Census revealed that Micro, Small, and Medium Enterprises (MSMEs) significantly contribute to Sri Lanka’s economy, with 1,017,267 MSMEs identified. Of these, 28.7% were industries, 40% engaged in trade, and 31.3% in services. 

The legal status of MSMEs shows that 54% of micro enterprises, 89% of small enterprises, and all medium-scale enterprises are registered.

NDB Bank has introduced the ‘SME Re-Energizer’ loan in collaboration with the Sri Lankan Government, offering financial support to SMEs and MSMEs. 

This initiative aims to empower these businesses and promote economic growth by providing essential financial assistance. The loan scheme features a competitive interest rate of 7% per annum and offers investment loans up to LKR 15 million per SME client with valid business registration. 

The loan targets critical sectors, including manufacturing, construction, exports, tourism, apparel, agriculture, and agro-based industries. It offers flexible repayment terms and aims to provide long-term financial solutions tailored to each business’s specific needs.

There is an urgent need for support for MSMEs, warning of severe consequences if their financial burdens are not addressed. 

MSMEs are struggling with Rs. 1.6 trillion in third-stage loans, including Rs. 250 billion attributed to non-wilful defaulters. De Silva highlighted the importance of restructuring MSMEs to prevent severe difficulties when parate executions resume after December 15.

SMEs comprise a significant part of Sri Lanka’s economy, with over one million SMEs accounting for approximately 75% of all businesses. These enterprises span all economic sectors and contribute about 45% of total employment in the country.

The ‘SME Re-Energizer’ loan supports business expansion and cost reduction initiatives, including purchasing machinery, equipment, or furniture, installing solar panels, and improving productivity. 

It also covers vehicle purchases for the tourism sector and supports new constructions, expansions, or refurbishments of factories, buildings, or warehouses.

NDB Bank aims to empower SMEs and MSMEs, recognizing their crucial role in driving economic growth and innovation in Sri Lanka. By providing affordable financing options, the bank seeks to help these businesses invest in their growth, enhance operational efficiency, and achieve their strategic objectives. This initiative reflects NDB’s commitment to fostering entrepreneurial spirit and supporting sustainable development in Sri Lanka.

For more information on the ‘SME Re-Energizer’ loan and its benefits, visit the nearest NDB branch or contact their customer service hotline. NDB Bank is dedicated to investing in the future of Sri Lankan enterprises, creating jobs, and fostering a resilient and diversified economic landscape

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