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US 60 m dollars Indian credit line to assist small and medium entrepreneurs - Minister Bogollagama

Industries Minister Rohitha Bogollagama said the 60 million US dollar credit line granted by the Indian Government to Sri Lanka for import of goods and services of Indian origin will help to revive the country's industrial sector which had been neglected in the past. The government will ensure the maximum utilisation of this credit line for the benefit of especially the small and medium scale entrepreneurs.

The Minister was addressing a seminar on the Dirigamana Industrialisation program held at the Diyatalawa Cultural Hall to promote small and medium scale industries in the Uva Province.

Minister Bogollagama said his ministry with a view to assist entrepreneurs who lack necessary market guidance and modern technology will set up a Regional Industrial Development Board (IDB) in Diyatalawa next month. This program will be a boost for the small and medium scale industrialists and the government is working closely towards their active participation in contributing to the rural economy.

He said, the government has taken steps to set up five regional economic zones and a two and half acres of land in Haldummulla in Diyatalawa has been allocated for this purpose. The other zones will be set up in Kurunegala, Kandy, Galle and Trincomalee. The regional zones are expected to play a vital role in promoting industries within their limits and to address issues at regional level.

The minister said the setting up of the IDB office in the region would lead to speedy action with regard to the working capital requirement of industrialists and transfer of technology which has been identified as core issues. The development effort limited to Colombo will be regionalised enabling easy access to banking and related services, market possibility and accessibility.

He said for the past three decades, the country's industrial sector has been neglected and it is time to revive this important sector which is the key for economic development. It is necessary to move from traditional industries to modern industries in accordance with the market requirement and changing demand.

The Minister said the Industries Ministry has embarked on a project to find alternative industries for the garment industry which is at a low ebb and steps are being taken to promote the footwear industry. The majority of the seven billion world population need footwear and there is a market potential for high quality international standard footwear which our country is capable of producing. With the industrial complex in place and anchoring industrialisation at regional level, Uva province would generate employment opportunities.

He said the Indian line of credit granted by the government of India to the tune of US $ 60 million for import of goods and services of Indian origin is an attractive offer to move the wheels of industry in the country. The government is planning to ensure maximum utilisation of this credit line for the benefit of especially small and medium scale entrepreneurs in this country.

The Minister said the credit line is available for existing businesses, new businesses and for individual entrepreneurs. Entrepreneurs in the manufacturing sector could benefit immensely from this credit line by importing plant, machinery and other equipment with all original spare parts and accessories.

He said it is also beneficial for the transport sector as there is a wide range of vehicles available from the credit line including busses, lorries, trucks and tractors made in India.

A special feature in this loan scheme is that it offers 9.7% interest, the lowest rate available in the market for importation of machinery, equipment and vehicles from India.

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