Business loans for Jaffna Youth

Youth Business Sri Lanka, a youth assistance programme at the Ceylon Chamber of Commerce, provided loans to the value of two hundred and fifty thousand rupees to five youths from Jaffna peninsula to start businesses, through the Chamber of Commerce and Industry of Yalpanam.

It is a continuing problem for the youth, anywhere in Sri Lanka; to get financial assistance for their businesses due to procedural and collateral issues, said Dr Anura Ekanayake, Chairman, Ceylon Chamber of Commerce (CCC) at the occasion of awarding loans to Jaffna Youth to commence business.

He said that Youth assistance programmes like YBSL fulfill a valuable service in this regard not only in improving the livelihood of the youth and their families, but also contribute to the development of the region, especially Jaffna, which is coming out of marginalization due to the years long conflict.

The Chairman of Jaffna Chamber of Commerce, Mr Poornachandran, pointed out that youth employment is a need of the hour in the context of post conflict Sri Lanka and this kind of credit support to youth to start businesses, would make them employment creators and thereby eliminate the factors that contribute to conflicts.

The total commitment during this initial phase for Jaffna is one million rupees, according to Youth Business Sri Lanka. YBSL programme supports enterprising youth who have a viable business plan, aged between 18-35 years, but do not have collateral or supportive background, through a credit facility for business start up, supported with business mentoring. The initial credit assistance is limited to fifty thousand rupees and to be paid back in twelve months.

Main features of this much needed YBSL credit programme are that the loans are given based on the viability of the proposed business. In addition, the enterprising youth is linked to an experienced business person as a mentor.

Sujeewa Ratnakumara, National Programme Manager, YBSL said that it is often cited that many small businesses started by youth fail because of the poor business decisions that these inexperienced youth make, mostly in managing finance.

He said that the YBSL’s previous experience with the Hambantota Youth Business Programme showed that over 80% of the businesses succeeded because of the advice given by the mentor. Thus mentoring has become a very significant factor, when youth attempt to tackle the modern day complexities of a business start up, and mentors provide this assistance voluntarily.

The YBSL programme has already implemented its programme in five districts; Hambantota, Kegalle,Trincomalee, Badulla and Jaffna. The Kandy district programme is expected to commence at the end of this month.

The funds for the YBSL credit programme in Jaffna is given by Confederation of Asia-Pacific Chambers of Commerce and Industry, (CACCI) Foundation, based in Taiwan.

Youth Business Sri Lanka (www.ybsl.lk) is an accredited programme of Youth Business International, a charity dedicated to supporting young entrepreneurs and is the leadership body for a network of youth business programmes implemented in 38 countries. The YBSL Secretariat is established at the Ceylon Chamber of Commerce.

- Asian Tribune -