The ‘Enterprise Sri Lanka’ (E-SL) program is progressing well with loans for the past three months alone exceeding 29,380 valued at Rs. 58,817 million being disbursed through 17 State and private sector banks, Finance Minister Mangala Samaraweera told journalists at the launch the ‘E-SL’ Hotline last week.
The hotline for the ‘E-SL’ program was launched to entertain complaints from those who have been denied access to the loan scheme by lenders. At present, the Bank of Ceylon, People’s Bank and Regional Development Bank with other State and private bank making up for 17 banks that offer loans through the scheme.
Loans have been disbursed across the country through all districts with Hambantota accounting for the largest number of loans released so far followed by Colombo 2,789, Ratnapura 1,691, Moneragala 1,498, Matara 1,481, Kandy 1,476, Kurunegala 1,471 and Kegalle 1,341. The number of loans disbursed to the Hambantota district is 4,842.
However, in terms of the value of the loans the Gampaha disbursed leads the list with Rs. 8,529.8 million followed by Colombo Rs. 6,591.7 million Kurunegala Rs. 4, 803.4 million and Kalutara Rs. 4, 131.2 million
Among the State banks the Bank of Ceylon is so far the highest lender providing 13,530 loans valued at Rs. 17,197 million followed by the Regional Development Bank - 8,356 valued at Rs. 5,901 million and People’s Bank 1,965 at Rs. 3,693 million.
Ran Aswenna, Jaya Isure, Rivi Bala Savi, Govi Navodaya, Riya Shankthi, Sonduru Piyasa, Diri Saviya and Green loans comprise the loans schemes of the ‘E-SL’ program.
However, according to Minister Samaraweera, complaints have been received that certain lenders have been hesitant to disburse loans turning down requests by prospective entrepreneurs.
“We have come to know that certain banks have denied access to the loan scheme which is intended at assisting young entrepreneurs to develop their enterprises and excel in their endeavours to contribute to the rural economy,” the minister said adding that speedy action would be taken on complaints made through the Hotline 1925.
The government has allocated Rs. 60 billion for the E-SL program with the aim of creating 100,000 entrepreneurs by 2020.
Elaborating on the current situation with the exchange rate, the minister said it is the staggering amount of debts of the previous regime that has put the country and the economy in a precarious position and that it is not the depreciating Rupee.
“The former regime handed over State land on a platter to China and borrowed extensively at high commercial rates not realising the repayment of it. Import restrictions of non essential goods are to curtail the outflow of foreign exchange and these measures are not permanent moves,” the minister said.
The government imposed a 100% cash margin on Letters of Credit (LCs), reduced the Loan to Value (LTV) ratio from 70 to 50 percent and stopped the importation of vehicles through the duty free permits.
The Rupee plunged to Rs.174.12 against the Greenback mid last week recording an all time low from the previous week’s Rs. 173.38.
Speaking about debt repayment over the next four years, the minister said the government is managing debt in a systematic way and added that it is promoting an export led economy to boost foreign reserves.
He said the current government maintains health relations with the international community which has helped the country gain access to the GSP Plus facility and US$ 400 million grant from the Millennium Challenge Corporation of USA which supports countries which promote good governance and democracy.
Rebuffing claims by the Joint Opposition that the short time period given to investors in the advertisement for the Colombo Hilton and the Grand Hyatt properties, is an indication that the government has already selected investors the minister said those suffering from kleptomania will always look at others from that same perspective.
“We have published advertisements in international papers and 88 world renowned companies have shown interest in investing in these properties. We have nothing to hide and everything with regard to the divesting the government stake of these properties will be done in a transparent manner.
The Hyatt Hotel, which is partially completed has so far cost the Employees Provident Fund, Sri Lanka Insurance and Litro gas over Rs 15 billion and the Hilton Hotel, to compete with new hotels, needs to upgrade hotel rooms which is expected to cost over Rs. 4 billion.
The Cabinet decided to divest the two properties as per a budget proposal to divest non-strategic holdings of the government.