Annual Report 2008 - Ministry of Finance and Planning

7. Development Finance
273
Table 7.11
Sector wise Distribution of Loans & Advances as at
31.12.2008
Sector No of Employment Loan %
Agriculture
A/C’s Generation Amount
(Rs. Mn)
& Fisheries 1,795 2,826 650.29 28.60
Manufacturing 237 3,267 1,091.17 47.99
Tourism 6 160 68.09 2.99
Transport 2 52 103.17 4.54
Trading 27 142 33.36 1.47
Construction 7 63 32.59 1.43
Financial and
Business Services 6 8 141.58 6.23
Other Services 41 384 153.64 6.76
Total 2,121 6,902 2,273.90 100.00
Source: Lankaputhra Development Bank
The 2121 projects which obtained loans during the year
covered a diversified portfolio in Agriculture & Fisheries,
Manufacturing, Tourism, Transport, Trading, Construction,
Financial and Business Services, and others sectors. The
projects are distributed across a wide geographical area in
the country including the Central, North Central, Southern,
Uva and also the newly liberated Eastern and Northern
Provinces. The highest number of loans has been provided
to Agriculture and Fisheries sector granting 1,795 loans and
followed by manufacturing.
sector 2,37 loans within the year. In terms of the amount
disbursed, Manufacturing sector took the lead providing Rs.
1,091.17 mn and followed by Agriculture & Fisheries and
Other Services sectors providing Rs. 650.29 and Rs. 153.64
respectively. Of the total disbursements, 76 percent of the
amount disbursed shared between Manufacturing and
Agriculture & Fisheries sectors while the Manufacturing
sector secured 48 percent and the Agriculture & Fisheries
sector 28 percent.
The bank has generated 6,902 employment opportunities
particularly out of the Western Province while contributing
to reduce income inequalities and youth unemployment in
the rural areas. The Manufacturing sector turned out to be
the leading sector in view of the employment generation
by providing 3,267 employment opportunities and followed
by the Agriculture and Fisheries sector. Accordingly, the
contribution of the Manufacturing and Agriculture &
Fisheries sectors for employment creation accounts for
about 47 percent and 40 percent respectively out of the total
employment opportunities created by the project loans.
Small and Medium Enterprise Sector
The Government has recognized that a well functioning
small and medium enterprises (SME) sector could take the
lead in generating employment and economic growth while
raising income levels for a large segment of the population.
Since regional SMEE (SME out side the Western Province)
comprises 75 percent of the total number of registered SMEE
in the country, the Government recognizes the importance
of SMEE in equitable regional growth. However, regional
SMEE have not realized their full potential for contributing
to economic growth and employment generation. Hence,
regional SME development is one of the key elements of the
Government strategy for reducing regional inequalities in
the policy framework of the Government.
Small and Medium Enterprise Regional Development
Project
The Small and Medium Enterprise Regional Development
Project (SMERDP) funded by the Asian Development Bank
(ADB) has been designed to accelerate development of the
SME sector through start-up SMEE as well as expansion
and diversification of existing SMEE outside the Western
Province enabling reduction in regional inequalities through
increased output and employment generation in order to
enhance the private sector share in economic development.
The project covers a three year period commencing from
January 2008 to December 2010. The SMERDP loan was
made effective on 08th April 2008 and it has commenced
implementation on mid of May 2008 after receiving the
mobilization advance (US$ 5.0 mn) on 16th May 2008.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008