The External Resources Dept., is negotiating with Japanese funding agencies for a fresh US$ 85 mn credit line for the small and medium scale industry.
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If approved the Japan Bank of International Cooperation (JBIC) will replace the US$ 65 ADB credit line now fully utilized by the Sahanya low interest-lending scheme. rn
rnThe ADB facility was available to the government at 1.5 per cent interest, while the small and medium scale sector borrowers obtain credit at around 9 per cent. rn
rnExternal Resources Department officials are hoping for similar terms with JBIC. Officials also expect the agreement to be sealed by August this year.
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-Jayantha Kovilagodage: jayantha@vanguardlk.com