Objectives

This study looks at the impact of the World Bank and ADB sponsored "Small and Medium Scale Industries (SMI) Loan Schemes" on the SMI sector in Sri Lanka. The general objective of this study is to bring to light some of the issues of the past to help plan programmes in the future. The study begins by assessing the impact of SMI loans in terms of the general objectives of these loan schemes.

Key Findings

The study contended that these loans did have a positive impact on the SMI sector. However, the loans were neither used to their full potential nor achieved all their objectives. It is also observed that despite the increased availability of credit facilities, small entrepreneurs still find it difficult to expand. The study then examines the shortcomings of programmes designed to finance SMIs, and the constraints that impede expansion.