Former Deputy Leader of the United National Party and Member of Parliament Ravi Karunanayake has called for the introduction of a special concessional loan scheme to support small and medium-scale entrepreneurs (SMEs), particularly young people entering the business sector.
Addressing the media, Karunanayake emphasized the need for a structured mechanism within the banking system to provide affordable financing options for budding entrepreneurs.
He pointed out that, under the current system, loan interest rates for SMEs range between 12% and 16%, creating a significant barrier for those attempting to establish or expand their businesses.
“This high interest rate environment is a serious obstacle for the growth of small and medium enterprises, especially for the youth hoping to start new ventures,” he said, urging the government and financial institutions to step in with targeted relief.
