Seed funds received under (a) above are as Follows :

CBSL funded Credit Guarantee Schemes

01 Credit Guarantee Scheme under Small and Medium Scale Industries (SMI)
02 Credit Guarantee Scheme under Small and Medium Enterprise Assistance Projects (SMAP)
03 Agriculture Rehabilitation Project Credit Schemes (ARP)
04 Susahana Credit Guarantee Scheme (SUSAHANA)
05 Perennial Crops Development Project Credit Scheme (PCDP)
06 Small Holder Tea Development Credit Scheme (SHTDP)
07 Plantation Sector Reform Project (PSRP)

GOSL funded Credit Guarantee Schemes

01 New Comprehensive Rural Credit Scheme (SARUSARA)
02 Tea Development Project Credit Scheme (TDP)
03 Second Perennial Crops Development Credit Scheme (SPCDP)
04 Apparel Sector Guarantee Scheme (Apparel)

Operation of Credit Guarantee Schemes

Implementation of a Credit Guarantee Scheme is more or less similar to implementation of any insurance scheme. According to the terms and conditions of the Credit Guarantee Schemes, the respective PCIs are responsible for undertaking certain activities including the following.

(a) Proper appraisal of projects for establishing their economic and financial viability.
(b) Obtaining prior approval from CBSL / donor agencies, as required, in respect of loans beyond a certain limit.
(c) Taking sufficient securities in accordance with the Operating Instructions issued by the CBSL.
(d) Observing necessary care and prudence in disbursing the loans and submitting position reports to CBSL on loans which have fallen into arrears every 6 months and taking steps to minimize any losses to PCIs, until a claim is lodged.
(e) Once the CBSL issues a guarantee, sustaining the validity of the guarantee cover by making timely and continuous payment of premia and providing required documents to CBSL.

Credit Guarantee claims of PCIs in respect of loans in default will be entertained by the CBSL only after the PCIs have initiated legal action against the borrower to recover the loan.  After the settlement of the claim, any money recovered by the PCI is to be shared with the CBSL immediately upon the receipt of such amounts.

News & Events

Makandura Opening Ceremony

Incubator & Technology Transfer Center (Business Research & Development Center),...

We are delighted to officially announce the launch on September...