‘Government going to the financial rescue of MSMEs’

By Hiran H .Senewiratne

The Cabinet took the initiative to provide financial assistance and support to micro, small and medium enterprise (MSME) industrialists who are struggling to do business due to adverse impacts of the COVID pandemic, the Minister of Industry and Commerce Wimal Weerawansa said.

“For that matter I have presented a Cabinet proposal titled ‘Difficulties Faced by Small and Medium Enterprises’. The proposal made to the Cabinet meeting held two weeks ago was approved with few amendments. We are ready to publish all the contents in another week, Weerawansa said during a webinar held last Saturday evening.

The event was organized by the Sri Lanka Chamber of Small and Medium Industries (SLCSMI) and was powered by the Institute of Money and Entrepreneurship Development (IMED). The event was titled ‘Empowering MSMEs to embrace the new normal’.

Weerawansa said this initiative will provide financial relief to SME industrialists who are faced with various difficulties amid the pandemic.

“These entrepreneurs need a little financial support to continue with their business activities that were impacted by the pandemic, he said, adding that all countries are faced with economic difficulties.

Weerawansa added: “The entire world is faced with a most unprecedented pandemic and all economies are faced with different challenges. Economic activities have been impacted severely and all industries are making every effort to stay afloat in these uncertain times.

“A special Guarantee Fund is now established under the Finance Ministry to support inventors.

“The Guarantee Fund is available for industrialists who can invent market-winning products, but do not have the capital to do so mainly because they are unable to obtain bank loans.

“The fund was established with the support of the Asian Development Bank (ADB).

“The Guarantee Fund was a 2020 budget proposal, which was implemented by Prime Minister and former Finance Minister Mahinda Rajapaksa.

“The ‘Empowering of MSMEs to embrace the new normal’ initiative by the SLCSMI which helps to build the mindset of entrepreneurs and industrialists is commendable.

“If the mindset breaks down, entrepreneurs will not be able to overcome the challenges despite their financial capabilities. That encouragement is essential at this moment – to revitalize a broken-minded entrepreneur, an industrialist, by pointing out their weaknesses and assuring them with a ‘you can’ mindset to overcome the challenges. The Chamber has stepped in to fill a key void in the industry.”

President, SLCSMI Prof Rohan De Silva said that the SME sector contributed more than 55 percent to 65 percent to the GDP. Therefore, to support this sector is the need of the hour, while the country’s economy is in a serious state.