Ex-Tigers Become Successful Entrepreneurs. Rehabilitation Authority Helps 11,500 Ex-LTTE Cadres with Vocational Training and Capital to Start Ventures

31st March 2013, www.sundayobserver.lk, By Gamini Warushamana

The Rehabilitation Authority (RA) has made successful entrepreneurs out of around 11,500 ex-LTTE cadres supporting them in vocational training and providing capital to start self-employment ventures.

“We have released over Rs. 255 million at 4 percent interest to over 1,500 rehabilitated ex-LTTE cadres to start livelihood ventures under phase one of the livelihood support project,” said Chairman of the Authority, E.A Samarasinghe. There were around 12,000 ex-LTTE cadres who were either arrested or surrendered to the security forces during the final phase of the war against terrorism.

Santhirasegaram Sivaraj of Kallappadu South Mullaithivu, a Successful Entrepreneur

They had undergone combat training and had been fighting for the LTTE after they had joined the LTTE willingly or unwillingly. Most of them did not have a proper education or any other skill to find a job or start an economic activity after reintegration with society.

Considering the social and economic issues these youth had to face, the office of the Commissioner General of Rehabilitation provided vocational training for them during the rehabilitation period. After rehabilitation, the RA had the responsibility of socially reintegrating these youth.

Minister of Rehabilitation and Prison Reforms, Chandrasiri Gajadeera proposed a soft loan scheme to provide initial capital. It financially supports them to launch livelihood projects and there are a large number of success stories under this scheme, Samarasinghe said.

RA has provided a maximum of Rs. 250,000 per person at 4 percent interest with a 10-year repayment period and a maximum grace period of one-year. The period depends on the nature of the project and if the project can generate revenue immediately, there is no grace period.

There are several stakeholders in this project. The three state banks, the Bank of Ceylon, People's Bank and the Sri Lanka Savings Bank provide funds and the Treasury provides 8 percent interest subsidy to the banks. Rs. 300 million has been allocated for phase one of the project and by the end of February 1,549 beneficiaries had received the loans.

Loan disbursement of phase one will be completed by the end of April and 2,000 beneficiaries will receive loans.

A Cabinet paper has already been submitted for phase 2 of the project and Rs. 550 million has been requested. RA hopes to support all rehabilitated youth who need financial support.

They have commenced projects in agriculture, fisheries, domestic industries and small businesses sectors. There are 262 beneficiaries in Jaffna, 312 in Kilinochchi, 357 in Mullaitivu, 41 in Trincomalee, 267 in Mannar, 294 in Vavunia, 10 in Batticaloa, 4 in Ampara.Deputy director of RA, Ananda Wijepala said that most of the projects were successful. “The RA provides enterprise development training programs for the beneficiaries and we closely monitor the livelihood projects.

These rehabilitated people too want to restart their lives with stable employment and integrate with society.” On the other hand there is a demand for some products and service they supply from these ventures in the domestic market.

For instance demand for masonry and carpentry work and services have high demand.The agriculture sub projects are vulnerable to market failures and we cannot meet these issues because these are small projects that are scattered in a large geographical area. However, we are attempting to form producer groups.RA successfully launched a similar credit scheme for displaced families who were resettled in 2010 and its loan repayment rate was over 97%, which was the highest among similar livelihood schemes, he said.

Related Info :

• 6,000 Farmers to Benefit by Rehabilitation of Largest Tank in Northern Sri Lanka

Sri Lanka in for a Construction Boom over Next 5yrs Driven by Reconstruction and Rehab Requirements

29th July 2010, www.lankabusinessonline.com

Post-war reconstruction and rehabilitation requirements in Sri Lanka and the general economic revival are expected to trigger a construction sector boom over the next five years, a report by a brokerage said.

Listed cement manufacturers, cable companies and those making PVC pipes and tile are expected to get more business and benefit from the building boom, NDB Stockbrokers said in a report on the construction industry.

"We expect the construction sector growth to surpass the expected growth in Goss Domestic Product of 7-8 percent over the next five years."

Over 700 billion rupees worth of construction-related projects are planned by the government during 2010-2012, according to the Ministry of Finance and Planning.

Sri Lanka's 30-year ethnic war by Tamil separatists in the north and east ended in May 2009, resulting in an immediate economic revival and anticipation of higher growth, with GDP forecast to grow seven percent this year.

Infrastructure destroyed or neglected by war are being repaired or upgraded and new facilities being built.

"Although certain contracts may be awarded to foreign principles, a substantial part of the work would be re-assigned (by way of sub contracts) to local contractors," the brokers said.

"In addition to the large scale projects initiated by the state, we estimate construction projects worth a similar amount, will be initiated by the private and informal sector."

NDB Stockbrokers said the rapid growth of the construction industry could create problems such as increased prices of raw materials like steel, cement and sand.

"In addition, the skilled labour force in Sri Lanka may be insufficient considering the expected growth in the construction projects."

The brokers said they expect the value of construction projects awarded to local contractors, including subcontracts, will increase annually by about 50-60 percent over the next three years.

"In addition to contractors, main suppliers to the construction industry such as cement, cable, PVC pipes and tile manufacturers are expected to benefit from the revival in the sector.

"Certain companies that are listed in the Colombo Stock Exchange are expected to benefit and we expect exceptional growth in profits," the report by NDB Stockbrokers said.

The construction sub segment of the industry segment recorded an average growth of 7.5 percent over the last three years.

However, growth in the building construction sector slowed in 2009 owing to the economic downturn and high lending rates.

Growth in the residential construction sector was also hindered by problems faced by developers like the Ceylinco Group when an unlisted finance subsidiary collapsed.

"Sri Lanka's residential property sector was not immune to the slowdown in the global markets," the brokers said.

"Sale of apartments slowed down considerably over the last two years, while very few new projects were developed."

Even the projects that were underway were affected and were slowed down.

But NDB Stockbrokers said future prospects in the building construction sector were improving with the housing construction sector expected to "rebound strongly" over the next five years.

The recovery of the northern and eastern regions, worst hit by war, is expected to generate "significant" construction and resettlement requirements, the report said.