The government plans to support the formation of 25 majority women-owned companies during the next three years and has proposed to provide concessionary credit facilities to encourage women entrepreneurs.
Budget 2018 presented by Finance Minister Mangala Samaraweera has made available credit facilities with the interest subsidy being at least 10% more for women entrepreneurs relative to others under the ‘Enterprise Sri Lanka Credit Scheme’. The Department of Development Finance has allocated Rs. 50 million to provide subsidy for women entrepreneurs.
“We want to encourage women-owned businesses and therefore, in our ‘Enterprise Sri Lanka’ loan schemes, we are giving preferential treatment for companies owned by women,” State Finance Minister Eran Wickremeratne told a post-Budget forum in Colombo on Friday. On the other hand, the proposal to set up 25 women-owned companies will have at least 10 equity shareholders and each shareholder, will have invested at least Rs. 10,000. The Government will extend a comprehensive support package which includes both non-financial and financial assistance including grants and the credit through the ‘Enterprise Sri Lanka Credit Scheme’ to these companies, the Finance Minister said unveiling the Budget proposals.
Speaking at the KPMG-organized post-Budget forum, the State Minister explained that although 34% of Sri Lanka’s labour force is women, the Universities however churn out more than 50% of women graduates each year. Therefore, the question is how Sri Lanka could increasingly get women to contribute and become a part of the labour force.
“One is by improving the conditions for women in both government and private sector. Another is by introducing flexible working hours for women by providing the legislative framework. The government is also looking at creating other practical circumstances where women can manage their careers, homes and children,” Wickremeratne said. On the question of supporting women-led homes particularly in the North and East, Wickremeratne highlighted that the experience in the post-war is that some of the loan schemes put forward has not achieved desired results. Therefore, he said the government has separated money in the Budget to help women-headed households. The Finance Minister, who unveiled the Budget proposals on Thursday, said, “The Government will support by way of provision of grants and the introduction of a low interest loan scheme to facilitate those indebted and to move out the debt trap through Co-operative Rural Banks and the Thrift and Credit Co-operative Societies.
“This will be implemented on a pilot basis in the North and the North Central Provinces.”