Lankaputra Development Bank to promote local footwear industry
Lankaputra Development Bank has introduced a special loan scheme to
make available the finances needed to boost the local footwear industry.
The scheme, known as the Loan Scheme for the Footwear Manufacturers
Association, has already got off the ground to a great start.
It is a joint initiative of the Ministry of Industrial Development,
Industrial Development Board, the Sri Lanka Footwear Manufacturers
Association and the Lankaputra Development Bank. Applications for loans
by members of the Footwear Manufacturers Association should be submitted
along with the recommendations of the Ministry of Industrial
Development. The Industrial Development Board will make available the
required technical know-how. Lankaputra Development Bank will provide
the required finances to the successful ventures.
Loans disbursed under the scheme is subjected to a ceiling of
Rs.500,000.00 with a grace period of 03 months for loan repayments. The
monies thus provided should be utilised to obtain the necessary raw
materials and machinery for the manufacture of footwear. The Bank will
monitor the utilisation and the successful operation of the venture
The local footwear industry has created around 50,000 direct and
incidental job opportunities with the industry concentrated on the
Colombo district. A survey conducted by the Ministry of Industrial
Development Bank has found that the local industrialists have the
potential to meet the entire local demand for footwear.
Local footwear is also exported with the local manufacturers securing
a niche market for their products on the European market. However, only
a few large scale manufacturers have entered the export trade. At
present, the local footwear industry is beset with a host of problems,
the main concern being the imported footwear flooding the local market.