SME Bank to solve youth unemployment
 

BY INDEEWARA Thilakarathne in Anuradhapura

THE launch of the SME Bank will address the issue of unemployment among youth in the country providing them with capital to start small and medium scale industries said Prime Minister Mahinda Rajapakse delivering the key note address at the inauguration of the SME Bank in Anuradhapura yesterday.

He said that small and medium scale entrepreneurs already contribute over fifty percent to the national economy and the introduction of the bank will further enhance their contribution.

"For the first time in Sri Lanka a program was launched to strengthen the Small and Medium scale entrepreneurs under a concept by the President Chandrika Bandaranaike Kumaratunga and under the able leadership of the Minister Rohitha Bogollagama" said Premier Rajapaskse.

He said that this program was launched at a time the country is experiencing a higher rate of unemployment and that these investors who obtained loans today could reduce it to a greater extent by generating new employment opportunities.

"What we need is to give them a helping hand to strengthen their enterprises and for that the Government had allocated Rs.5000 million to set up a bank which would facilitate them without lateral requirements and on the evaluation of their project proposals"

The Prime Minister also said that Small and Medium scale entrepreneurs could withstand the ups and downs in the economy and that society could be developed through the individual development.

Minister of Advanced Technology and Enterprise Development Rohitha Bogollagama said that with the launch of the SME Bank the concept of entrepreneurship gets a novel interpretation and that Bank will be operating through 93 counters set up in National Savings Bank Branches Island wide.

Minister Bogollagama further said that the historic city of Anuradhapura was chosen for the occasion as it was the place where entrepreneurship started 2500 years ago. He said that the state owned bank was started with an initial capital of Rs.5000 million allocated from the budged.

Application of advanced technology in rice mills, gem cutting , ornamental fishing, garment and Beauty culture , food processing Industry and carpentry were some of the projects the applicants obtained loans to develop. The loans are provided under 7 to 9 percent interest rates.