Start-up capital for 500 SME entrepreneurs :

Lankaputhra Development Bank launches 'Siyapath Pubuduwa'

In line with its vision to be the vibrant facilitator of economic and social development in Sri Lanka and in a bid to significantly strengthen entrepreneurship at regional and national levels, Lankaputhra Development Bank (LDB) has launched 'Siyapath Pubuduwa' - a scheme designed with the objective of providing a start-up capital of up to one million rupees to 500 medium and small scale entrepreneurs who want to showcase their talents in the industrial, agricultural and service sectors, thereby creating more employment opportunities for business-minded people in rural areas in Sri Lanka.

Lankaputhra provides financial assistance to innovative entrepreneurs with full government security assurance. Being a Bank fully owned by the Government through the Ministry of Finance and Planning, it guarantees the highest level of security to the people who invest with them. As the only development bank owned by the Government, LDB lends at low interest rates to keep in line with the Government's objectives.

As such, through Siyapath Pubuduwa, the small and medium scale business entrepreneurs of Sri Lanka, who are between 18-35, have the opportunity to obtain loan facilities without the traditional collaterals, within Rs. 500,000-1,000,000 from the bank to invest in projects that contribute towards national development.

This can be in the form of starting a new business venture or to develop an existing business for which credit facilities for maximum six years will be provided at concessionary interest rates at 12 percent. The bank also provides entrepreneurs with the managerial advice and guidance with regard to their business projects. The anticipated amount to be disbursed among the target beneficiaries under this scheme is approximately Rs. 500 million.

Lankaputhra Development Bank Chairman told a media briefing that they cater to the development of agricultural and industrial sectors of the rural economy. "Our efforts are truly tied up with the grassroot level needs of the rural sector. A vital factor in our effort is to help construction, agriculture and the industrial sectors of the rural folk by channelling finances, providing advice and rendering guidance. Our mission will fulfil the long awaited national development through the development of the rural economy, which is the backbone of the country's economy."

Lankaputhra Development Bank commenced operations in June 2006, and was established in line with the 'Mahinda Chinthana', to promote entrepreneurship in the small and medium sectors of the country.

In addition the Bank also focuses on overcoming some of the regional imbalances with regard to the various sectors of the country.

The objective of the Bank is to directly involve itself in the country's development activity, strengthening the SME sector in the regions through innovative and flexible projects such as these and thereby play a catalytic role in promoting regional economic expansion throughout the nation.