Applicability for Different Sectors

1) Supporting the use of Solar Power:

Tax benefits
The NBT and PAL will be exempted on machines and equipment including solar panels and, storage batteries which will be imported for the establishment of solar charging stations.

2) Credit schemes
Individuals, companies incorporated under the Companies Act, No. 7 of 2007, co-operative societies, farmers/fisheries societies engaged in agriculture, agro processing including drip irrigation, poultry,
canning, plantation and tourism industry, that will invest in technology for the generation of solar power to be used for their own operations, will be supported through the introduction of a loan scheme at a subsidized interest rate of 8%.

Supporting the conversion from Non-Bio Degradable Polythene to environmentally friendly alternatives: ( Budget Proposal Nos. 23 and 24)

The Government will bear 50% of the investment cost incurred on equipment and machinery by SME polythene producers when converting from polythene to environment friendly alternatives.

A concessionary Green Loan Scheme will be introduced by the Pradeshiya Sanwardena Bank (also known as the Regional Development Bank) to encourage local entrepreneurs to engage in manufacturing bags, packing materials etc. out of bio degradable materials such as banana fiber, palm leaves, coir, and bamboo.

3) The “Pavithra Ganga” initiative:

The companies that already discharge their waste into the Kelani River, lagoons and estuaries will be:
 supported in the next 5 years to invest in technology to ensure zero discharge of waste into these water bodies .
 eligible to utilize the “E- Friends” credit facility at a concessionary interest rate of 6-8%.

The CEA will issue relevant regulations and will strictly monitor this process.

4) Supporting the SME companies:
The SME companies will be companies incorporated under the Companies Act, No. 7 of 2007 and will have at least 10 shareholders each contributing at least Rs.10,000 in equity. These companies could engage in any business from agriculture to apparels to IT.

The support provided by the Government will include:
 provision of equipment and facilities such as storage facilities, planting and seeding equipment, weed removers,
boats, fishing nets etc.

 extension of leasing facilities from the State banks to these companies to purchase such machinery.
 provision of a letter of undertaking or a guarantee to the respective State bank for the equipment, and other facilities purchased and, to bear at least 75% of the lease cost on behalf of the company during the lifetime of the lease.

 make available the “Enterprise Sri Lanka Credit Schemes” to these companies.

 provision of technical support to incorporate companies, maintain books and records, negotiations with financial
institutions will be provided by the private sector consultants. Each company incorporated under this mechanism will have a consultant company to support and the cost of the company for consultations for a period of 36
months will be borne by the Government in full, while for a period of another 24 months the Government will bear 50% of such cost. An incentive package based on the performance of these companies will be made available to these
consultants.

 bear the hire purchase lease rental and the interest subsidies by the Government.

These facilities by the Government will be 10% above the norm for companies headed by women.

The above facilities for companies headed by differently abled will be 15% above the norm.

Financial and non-financial support such as transfer of technical knowhow, packaging and marketing of products or services etc. will be coordinated and provided by the Department of Development Finance at the Ministry of Finance and Mass Media.

5) Supporting the startups and the innovation culture:

The “Erambuma” Credit Scheme

 University graduates with viable business ideas are eligible to utilize the “Erambuma” credit facility.
 The maximum loan size is Rs. 1.5 million per idea per person.
 The interest is 100% subsidized by the Government and the repayment is fully guaranteed through a Government
guarantee.

6) The “IT Initiative”
 The Government will finance the “IT Initiative” by providing Rs. 3 billion over a period of 3 years.
 This initiative will provide both financial and non-financial support by way of grants, equity investments, credit facilities, mentoring, technical support etc. to:

 local startups

 attract foreign startups

 Small and medium IT companies with a turnover around USD 2-3 million per annum to at least double
their revenue in 3 years.

 create the enabling environment by supporting establishment of Incubators, the acquisition and
augmentation of skills and know-how in collaboration with the local universities etc.

 The Government will facilitate effective collaboration between the Universities and the Industry in the following
manner.
 The IT industry to be able to acquire and augment the skills set in line with the demand in collaboration with
the University of Colombo (UoC) and Moratuwa (UoM) and, the SLIIT. For example, if an IT company requires training of its employees, non-employees including undergraduates of Universities or Technical Colleges, the company
could collaborate with UoC, UoM or the SLIIT to design the required courses. The “IT Initiative” will bear a portion of the cost while the company will bear the balance. Those who successfully complete such courses will be employed by the companies.
 This will be operated through the EDB and be managed by a Board comprising mainly of experienced private sector professionals, investors and entrepreneurs.

7) The “I2I Initiative”
 The “I2I” aims to connect university graduates and NVQ 4 certified graduates for a registered patent or a viable business idea with the industry. (Industry will adopt the Innovator).
 The Government will bear:
 the monthly salary, i.e., 50% up to a maximum of Rs.50,000 per month for a period of 24 months, and
 the cost of patenting in Sri Lanka and counsel on patenting

8) Export Access Programme:
We will introduce an “Export Market Access Support Programme” targeting the extension of support to:
 local companies that already have exports of less than USD 10 million per annum.
 potential new entrants to the export market to better access the global value chains.

This programme will facilitate:
 meeting of the cost of compliance which includes the cost of provision of free samples, intellectual property registration,insurance and promotional costs undertaken overseas.

 meeting of the full or partial cost of rent of retail shop space or shelf space occupied by domestic brands that reach overseas markets for a maximum period of 36 months.

Product development assistance to exporters to develop new products or improve existing products to meet the export market standards and financial support will be provided through the “Enterprise Sri Lanka” Credit schemes.

This programme will be implemented through the EDB.

9) Supporting Tourism:
Homestay Programme:
 A credit scheme will be introduced to support home owners registered with the SLTDA to upgrade their houses to meet the standards required to be in the Homestay programme.

 The facility under the scheme up to a maximum of Rs. 5 million per person at an interest rate of 6%, with a maturity period of 10 years will be introduced.

10) Employment Preparation Fund:
An “Employment Preparatory Fund” will be established under the Ministry of National Policies and Economic Development and will be operated through the National Youth Corps.

This fund will finance vocational training courses that are required by the private sector. The courses will be designed in collaboration with the private sector and such courses may be conducted at institutions such as Hotel Schools, Nursing Schools etc.

Most of these courses will be short termed with duration of 3-6 months and at the successful completion, employment will be guaranteed by the private sector.

This fund will be further utilized to:
 pay a stipend of Rs. 3,500 per month for those following training courses up to a maximum duration of 6 months, and
 finance the cost of the training course, in full or partly.

The Government will further incentivize the private sector to employ these youth who successfully follow these training programme(s) by bearing the cost of the salary of an employee up to Rs. 6,000 per month for a period of 6 months and the partner employer will pay a further allowance of Rs. 10,000 per month.

11) Supporting the middle income earner to be a home buyer:

A concessionary loan scheme will be introduced by the National Savings Bank to facilitate first time middle income home buyers.

The following terms and conditions will be applicable in this regard.

 Maximum loan size Rs. 5 million

 Interest rate 7% per annum

 Tenure 7 years

Leave a Reply

Your email address will not be published. Required fields are marked *