ECONOMYNEXT- Sri Lanka will set up a state-run Youth Startup Fund and a Guarantee Fund to help young entrepreneurs get capital, Minister of Youth Affairs Namal Rajapaksa told parliament.
Responding to a question raised by opposition MP ChamindaWijesiri, the minister said that the cabinet has approved his proposal to establish a Youth Startup Fund.
“We have got the cabinet approval,” he said responding to a question from legislator Chaminda Wijesiri.
“We will table the bill in the parliament really soon for a Youth Startup Fund.
Through this fund, he said the government expects to provide interest-free loans for the youth entrepreneurs as an investment.
Youth Affairs Ministry together with the Ministry of Industries and Finance Ministry is working on establishing a Guarantee Fund which will allow the youth entrepreneurs to transform small scale businesses into medium scale businesses, Minister Rajapaksa said.
The fund, he said will guarantee loans from banks in granting loans for the youth entrepreneurs.
“They cannot obtain a loan from a bank because they will ask for all sorts of papers and at last they will grant the loan for the deed of the house, so there is no point in blaming the banks for this but we should find a method,” he said.(Colombo/April 21/2021)