Need for loans devoid of red tape stressed

Shirajiv Sirimane in Hambantota

The Sri Lankan banks must develop a system to offer credit facilities to the micro and SME sector eliminating red tape, said Country Manager International Finance Corporation (IFC) Gills Galludec.

Speaking at the Southern Chambers Access to Finance Advisory Service Programme at Peacock Beach Hotel he said that collateral is something that hampers the economic development. "The Banks must come up with more flexible systems to iron out this grey area," he said.

Norwegian Ambassador Tore Hatterm who initiated the programme said that the Norwegian Government would grant US$ 2.5 million through IFC for the Southern Province enterprise development. Through this grant the SME sector in the South would be able to enhance their business environment.

He said that Norway had been involved with the Southern Province development for over three decades and had invested more that Rs. 4 billion. "In addition he also support vocational training in the IT fields, Agriculture and many other areas," he said.

The Ambassador also said that permanent peace too is very important for economic growth and he too is doing his best to achieve it, he said.

The projects under the US$ 2.5 million which grant would be for a period of three years' be implemented by the IFC with the assistance of the five Southern Chambers, namely Hambantota, Ratnapura, Matara, Moneragala and Galle. The banks in the area too would benefit from this grant, he said.

The General Manager, IFC, Advisory Service for South Asia, Anil Sinha said that this programme is a new milestone in IFC's and the Norwegian government's shared vision for SME development.

This programme is a result of a series of discussions that the IFC had with Chamber officials, SME entrepreneurs and banks to identify ways to improve access to credit and financial services and promote SME growth in the Southern region.

Secretary General Hambantota Chamber of Commerce Azim Thassim said that this programme would enable more Chamber members to access credit and it would also be a membership drive as more would want to join Chambers and reap benefits.