‘Enterprise Sri Lanka’ targets 10,000 jobs in first year

• Scheme receives nod from 14 Financial Institutions
• allocates Rs. 65b to fund startups and entrepreneurial ventures
• Special concessions for young entrepreneurs, women and differently-abled persons

The government expects to generate 10,000 new jobs, including both direct and indirect opportunities, through the implementation of the 15 different ‘Enterprise Sri Lanka’ credit schemes this year, an authoritative official said. According to the Director General at the Department of Development Finance of Ministry of Finance and Mass Media, A.M.P.M.B. Atapattu, the heads of all state and majority of private commercial banks have given their green light to join as Participating Credit Institutions (PCIs) under the program to be officially launched in March.

“A total of 14 institutions have consented to join in implementing the scheme. These include all the state banks including the two saving banks, National Savings Bank and Sri Lanka Savings Bank and the Licensed Specialised Banks,” Atapattu said.

On the other hand, Atapattu highlighted that the 8 credit schemes launched last year to provide low interest rates to support SMEs and micro-level entrepreneurs has so far disbursed Rs. 16 billion worth of loans during the three months up to 31^st December 2017. Under a 2018 Budget proposal, the 8 credit schemes together with other government-assisted existing and proposed credit schemes was collectively named as the ‘Enterprise Sri Lanka’ Credit Scheme.

Issuing a statement last week, the Finance Ministry said the ‘Enterprise Sri Lanka’ schemes have been proposed for young entrepreneurs in the fields of agriculture, fishery industries and for small and medium enterprises. In addition, women and differently-abled persons who come forward to take part in the programme will be offered an additional interest subsidy of 10% and 15%, respectively.

Accordingly, the Ministry has allocated a sum of Rs 60 billion through state and private banks and another Rs 5 bn has been set aside by the Treasury to reimburse the interest subsidy to the banks. The scheme will provide qualifying potential entrepreneurs an interest subsidy upto 75% of the effective interest rate through the PCIs

“Women will have to form a company at least with ten equity share holders and each share holder will have invested at least Rs 10,000. The government will extend a comprehensive support package which includes both non-financial and financial assistance including grants and the credit through the enterprise Sri Lanka credit schemes to these companies,” the Ministry statement noted.

According to a recent World Bank report, Sri Lanka has the 14^th largest gender gap in labour force participation globally with Female Labour Force Participation (FLFP) declining from 41% in 2010 to 36% in 2016. On the other hand, men’s participation remained above 75% during the same time period.