TAFREN, SME Bank to assist SME industries

by Ramani Kangaraarachchi

The Federation of Chambers of Commerce and Industry of Sri Lanka FCCISL will sign two MOUs with TAFREN (Task Force to Rebuild the Nation) and the SME Bank to overcome the difficulties faced by the Small and Medium Entrepreneurs affected by the tsunami.

Director, Back to Business project of FCCISL T. B. Weerasekara said the "Back to Business" project which was launched in March this year to assist Small and Medium Entrepreneurs affected by the tsunami has shown positive results and is progressing satisfactorily.

But inability to provide bank loans due to land based collateral issues has become a major problem. The Government has to make some arrangements to overcome this situation, he said.

'Some people do not have anyone to sign as guarantors' because they have lost all known people. However, once the two MOUs are signed, the problem could be eased he said.

At present, the Back to Business project concentrates on conducting workshops and business counselling and 1469 have participated in 41 workshops so far and Rs 29.4 million have been granted to 1393 affected SME people.

Another 346 women entrepreneurs have been granted Rs 6.9 million to restart their business. The loan facilities provided through Susahanaya amounts to Rs 2,81.7 million as at August. Arrangements have been made to provide grants to 330 deserving SMEs in Trincomalee, Ampara and Batticaloa districts next week not exceeding Rs 25,000 each.

The project has planned to provide employment for 50,000 within the targeted period of three years and the business plans for SMEs will be done by the project.

The Small and Medium Enterprise Bank was set up on a pledge by the UPFA Government to financially assist the SME sector. It has already provided financial assistance to emerging entrepreneurs in several districts.

President Chandrika Bandaranaike Kumaratunga following the tsunami, set up TAFREN and it coordinate and assists Government agencies and institutions in their efforts at reconstruction and rehabilitation in the tsunami-affected regions.

TAFREN will fall under a Parliamentary Act for 3 to 5 years, during which time it will focus on ensuring accelerated economic growth within the southern and eastern parts of Sri Lanka.

The Federation of Chambers of Commerce and Industry of Sri Lanka is a private sector trade promotion organisation whose objectives and functions are to promote commerce and industry and develop private entrepreneurship.

The FCCISL is also the umbrella body for over 30 chambers of commerce and industry and allied associations countrywide.