Sri Lanka small hotels to get interest free loan of Rs500,000

ECONOMYNEXT – Sri Lanka’s small hotels and homestay hosts could get an interest free loan of up to 500,000 rupees  to tide over the hit from Easter Sunday bombings, Finance Minister Mangala Samaraweera said.

"Many small hotels, and people providing homestay services from Mirissa  to Ella were earning money from tourism," Finance Minister Mangala Samaraweera said.

"But they are in trouble after Easter Sunday attacks."

The loans called ‘Sancharaka Podda’ will be given under Enteprise Sri Lanka credit.

He said the loans will be provided by Regional Development Banks and the Treasury will give the interest subsidy. The subsidy will be about 1,500 million rupees.

Borrowers will get a one year grace period.

"We know that the industry will get back to normalcy in a year," he Samaraweera said.

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He said the loan will have to be repaid in three years. The installment could be about 8,000 to 12,000 rupees a year. (Colombo/May30/2019)