Youth SMEs to have easy access to loans – Namal | Daily News

Youth SMEs to have easy access to loans – Namal

The Minister of Youth Affairs and Sports is looking at the possibility of providing collaterals for new youth enterprises that need capital from banks said, Minister Namal Rajapaksa.

“The Youth Affairs Ministry is looking at being the guarantor for the youth SMEs from certain industries to allow them to start a venture without capital being a hindrance, Minister Namal Rajapaksa told ‘Daily News Finance’.

Rajapaksa participated in a recent discussion with State Minister of Money and Capital Market and State Enterprise Reforms, Ajith Nivard Cabraal and other government financial bodies to explore the possibility to introduce an ‘easy access loan system’ to small and medium-sized (SME) entrepreneurs.

“We have also observed a bigger demand for these kinds of seed capital requirement especially from youth in the North and East as they were overlooked in this regard for many years,” the Minister said subsequent to a visit and engagement with SME youth entrepreneurs in the Northern Province last week.

“It’s not only in the North and East, but the same in the Hambantota district and other parts of the country, as well. We have discussed with the government financial sectors to provide an easy loan scheme for the SMEs, and the youth. The ministry is hoping to set up an SME funding unit within the Minister to address these issues within the ministry itself soon”.

He added, the biggest challenge for youth, in the next couple of years, will be employment and creating entrepreneurship and the ministry is focused on providing the technical know-how and providing them with a market for their products both locally and internationally.

“The youth ministry has carried out research concerning the future job markets both locally and globally and will be working with vocational institutes for training programmes to meet these future job demands.”

‘We are working closely with the Board of Investments (BOI) and the Foreign Employment Bureau as well.”