Central Bank provides Rs 5.9 billion in loans for tsunami - hit businesses

Anjana Samarasinghe

LOAN SCHEMES: The Central Bank of Sri Lanka (CBSL) has provided Rs 5.9 billion through three loan schemes for tsunami affected enterprises and industrialists.

Director of Regional Development Department of CBSL W. M. Karunaratne told Daily News that they have provided funds for over 13,500 projects to the value of Rs 5.9 billion through three schemes for tsunami effected businesses.

Under the Susahana loan scheme the bank has provided 5297 loans to the value of Rs 3.2 billion. CB has contributed Rs 3 billion through its reserves for the scheme and Rs 352.6 million has been provided by the Government for the scheme.

However the balance funds are being transferred to the credit guarantee fund.

'We launched Small Business and Revival Programme SBR with applying the same terms and conditions in the Susahana scheme. JBIC provided the funds for the scheme. Under "SBR 5376 loans were provided to the value of the Rs 2.7 billion. This is aimed at the tsunami affected small scale business', he said.

UNDP funded USD 1 million for the third loan scheme and it was targeted to facilitate tsunami hit micro level businesses. This scheme provided 2990 loans to the value of Rs 96.8 million.

Central Bank has now completed providing funds for tsunami affected businesses through these schemes. Though these are loan schemes the bank provided them at concessionary interest rates. These loan recipients are back in business and they have started repaying their loans, he said.

The Central Bank also launched a loan scheme to fund medium and large scale businesses which were back to business after being hit by the tsunami.

This loan scheme was launched with the European Investment Bank and this was launched last April but the disbursements commenced last November. Under this programme the minimum loan amount will be of Rs 1.4 million. 'We are promoting this scheme through the business chambers and the Sri Lanka Tourist Board, he added.