Empowering Entrepreneurs to Empower the Nation –
Lankaputhra Development Bank launches Siyapath Pubuduwa
For the first time in Sri Lanka, a special loan scheme designed away from
traditional collaterals to aid 500 budding medium and small scale entrepreneurs…

08th December 2009 – In line with their vision to be the vibrant facilitator of economic and social development in Sri Lanka and in a bid to significantly strengthen entrepreneurship at both regional and national levels, Lankaputhra Development Bank (LDB) today launches “Siyapath Pubuduwa” – a special scheme designed away from traditional collaterals with the objective of providing a start-up capital of up to one million rupees to 500 budding medium and small scale entrepreneurs who want to showcase their talents in the industrial, agriculture and service sectors, thereby creating more employment opportunities for the business minded people of rural Sri Lanka.

Lankaputhra, enshrined as the “Nation’s Enterprise Bank”, is a truly Sri Lankan bank that provides financial assistance to innovative entrepreneurs with full government security assurance. Being a Bank fully owned by the government of Sri Lanka through the Ministry of Finance and Planning, guarantees the highest level of security to the people who invest with them. As the only development bank owned by the government, LDB lends at very low interest rates in order to keep in line with government objectives. As such, through Siyapath Pubuduwa, the small and medium scale business entrepreneurs of Sri Lanka, who are between the ages of 18-35, now have the opportunity to obtain loan facilities minus the traditional collaterals, within any range of Rs. 500,000 to 1,000,000 from the bank to invest in projects that contribute towards national development. This can be in the form of starting a new business venture or to develop an existing business for which credit facilities for maximum 6 years will be provided at concessionary interest rates as low as 12%. The bank also provides entrepreneurs with the required managerial advice and guidance with regards to their business projects.  And as such the expected amount to be disbursed amongst the target beneficiaries under this scheme is a magnitude of approximately Rs. 500 million.

Speaking at the Press Conference, Mr. Sarath de Silva, Chairman of Lankaputhra Development Bank said, “We cater to the development of agricultural and industrial sectors of the rural economy. Our efforts are truly tied up with the grass root level needs of the rural sector. A vital factor in our effort is to help construction, agriculture and industrial sectors of the rural folk by channeling finances, providing advice and rendering guidance. Our mission will fulfill the long awaited national development through the development of the rural economy, which is the back bone of the country’s economy.”

Lankaputhra Development Bank commenced its operations in June 2006, and was established under the mindset of the ‘Mahinda Chinthanaya’, mainly with the intention of promoting entrepreneurship in the small and medium sectors of the country. In addition the bank also focuses on neutralizing some of the regional imbalances with regards to the various sectors of the country. The objective of the Bank is to directly involve itself in the country’s development activity, strengthening the SME sector in the regions through innovative and flexible projects such as these and thereby play a catalytic role in promoting regional economic expansion throughout the nation.