10-year concessionary loan scheme at 5% for small businesses in Nuwara Eliya

The Ministry of Industries has initiated a new loan scheme to support the development of small businesses in the Nuwara Eliya District, offering loans at a concessionary interest rate of five per cent to be repaid over a period of 10 years.

Assistant Director of the Small Business Development Division, A.G. Bandara made this announcement while addressing an awareness programme held at the Bank of Ceylon branch auditorium in Nuwara Eliya to educate small-scale entrepreneurs in the area.

He said that the loan will be granted at a five per cent interest rate on a declining balance basis and is aimed particularly at promoting industrialists in the district.

“Nuwara Eliya is a key tourist destination. There are a large number of entrepreneurs providing various services connected to the tourism and industrial sectors. The primary role of the Small Business Development Division is to provide the necessary facilities to uplift these entrepreneurs through this loan scheme,” Bandara said.

He further noted that discussions are currently underway with the Bank of Ceylon regarding the implementation of the scheme, and that the Ministry expects to roll it out in collaboration with several commercial and other banks.

According to the 2016 Census, there are approximately 24,000 businesses operating in the Nuwara Eliya District, of which around 40 per cent are engaged in construction, manufacturing and services. He noted that the new loan scheme has been designed to support businesses in these sectors.

Bandara added that only entrepreneurs recommended by institutions such as the Small Business Development Division of the Ministry of Industries, the Industrial Development Board and the Entrepreneurial Development Authority will be eligible to obtain the loan facility.

source: Daily Mirror