Business updates

Additional Financial Support from the Government

Additional Financial Support from the Government

21 Mar 2021

The government has decided on more financial support to self-employed persons as well as Small and Medium Enterprises (SMEs). 
This initiative aims at providing support to those who have suffered a loss of revenue as a consequence of the lockdown in the fight against Covid-19, to overcome their financial difficulties.

The measures include:

• A one-off grant of Rs 10,000 to self-employed persons, which concerns an estimated number of some 200,000 eligible beneficiaries.  

• Therefore, with the one-off grant and the allowance under the Self-Employed Assistance Scheme, self-employed persons are entitled, for the month of March 2021, to a financial assistance of Rs 12,550. 

Financial support to SMEs

• An SME Interest-Free Loan Scheme of an amount of Rs 100,000 at no interest rate with a moratorium of 5 years. The scheme is eligible for SMEs with a turnover less than Rs 50 Million.

• One Million SME COVID-19 Special Support Scheme. The DBM will grant a loan of up to Rs 1 Million, without the need to provide guarantee, at an interest rate of 0.5%.

• The period for the repayment of Value Added Tax (VAT) has been extended as at date, to 15 July 2021.

• The DBM is granting an extended moratorium period of 1 year to all SMES, on all its existing schemes, as at date. 

Business operators are invited to contact the Guichet Unique of the Ministry of Finance, Economic Planning and Development for more information and assistance to submit their application.