ABOUT THE SCHEME
The Sri Lanka Export Development Board (EDB) jointly with National Science Foundation (NSF) is implementing the Grant scheme for SME/Startups for innovative product/IT based solution development to increase high-tech exports in ICT sector in 2022
- Develop 10-12 companies per year in the ICT industry as the direct beneficiaries by introducing them to global value chains
- Register up to 5 new patents in the focused tech segments such as Internet of Things (IoT), Robotics, Artificial Intelligence (AI), Machine Learning (ML), per annum
- Generate around 500 new jobs for the graduates by 2025 in IT, Engineering and electronics disciplines with the expansions
- Increase export revenue up to US$ 3 Bn by 2025
ASSISTANCE CATEGORIES AND ELIGIBLE ACTIVITIES
As defined in the National Policy Framework for SME Development by the Ministry of Industry and Commerce, SME companies are the companies with the Annual Turnover of Rs. 16 Mn to Rs. 750 Mn.
Entities were registered before 01/01/2019
Financial assistance will be given for the following activities relevant to the project
|Areas of Assistance||Activities|
|Development of innovative ICT products/services||
|Obtain IP rights and PCT application||
|Establish Sri Lankan home grown ICT brands in overseas markets||
|Link with global value chains||
An entity engaged in the ICT industry for minimum of 03 years
- Assistance will not be granted under this Scheme to those who have obtained financial assistance for similar activity under any Scheme of the Government institute during past 3 years
- Following documents to be submitted by the selected participants and EDB will inform the selection in due cource. Form 15 (Annual Returns) , Article of Association , Audited financial accounts for previous three years
- Funds will be reimbursed based on the accumulating of the funds to EDB by the Treasury
- Enterprises who have defaulted EDB loans are not eligible to apply unless all outstanding dues to EDB are settled before sending the application
- Selected companies will have to sign a legal agreement with EDB
- A company will be eligible to receive assistance under this scheme only one time
- Applications will be evaluated by a Proposal Review Committee comprising of officials from the National Science Foundation, Industry Experts and the EDB
- Incomplete applications, applications submitted without required documents or not adhered to the above guidelines will be rejected
- For each purchase of equipment, company should submit 3 competitive quotations for each activity
- The recommendation of the Proposal Review Committee will be the final
- Applicants should submit any additional information or documents if requested by the EDB/Proposal Review Committee
- Any documents/bills/quotations/certificates furnished found to have false information; the EDB has the right to refrain from reimbursement of approved grant component
- A company could be blacklisted (i.e., disqualified for assistance) if any false information is provided and in breach of the agreement
- In principle, approval is valid for the duration as per the agreement signed with EDB. Claims for payment to be submitted within the agreed time limits and any pending claims will not be carried beyond the planned period
- EDB /NSF and Proposal Review Committee will visit the applicant's company during the evaluation process and before disbursement of funds
- In the event of any false claims being lodged, EDB reserves the right to claim a refund of the amount granted to the applicant
- The decision of the Chairman & CE of EDB will be the final
Frequently Asked Questions
Is this only for IT related product ?
IT related tech products and niche IT solutions for export markets (IoT/AI,Robotics, etc.)
Can we have a number to contact for application assistance as we need some assistance in filling some sections and understanding the questions better?
will the financial assistance provide only for companies that develop ICT solutions? If so, are there any schemes for startup Research and development companies in medical sector?
Yes. IT/tech solutions for export markets.
Is it only valid for purchasing? Can we use engineers to build local?
Yes. Outside payments (testing, certification, purchasing, etc.) Not for working capital as salaries, etc.
So there should be a minimum turnover of 16 million per year to be eligible to this program?
Minimum turnover for SMEs. For Start-ups there’s no limitation.
I am Doing a Mixture and Bites its kind of Small Leavel.so My company can Eligible for this Project.
No. this is only for IT/tech industry
Are there any scheme for Wood and furniture export companies ?
Not from this scheme
Can pre revenue companies apply for this who are on beta test status for IT startups but not SME.
All Start-ups and SMEs should provide financial documents. There should be a proof for revenue generation certified by a banker.
Regarding the legal status, what we have to select for a private limited company?
LLC (limited Liable Company.)
Is it mandatory to have Permanent employees? Are contracts not valid?
Yes. A company should have permanent employees.
We are a medical device development company that design, manufacture, and market laboratory equipment for Assisted Reproductive Technology (ART) and Research Laboratories. We use some software in the R&D process. Can we apply for this as we do not develop ICT solutions? If not, will you give any assistance or expect to provide any assistance for such companies?
All applicants are considered to engage in IT related activities. Other R&D projects are not considered from this scheme.
Can Possible to Food Productions?
What is the maximum grant given? is this a grant or loan?
Rs. 4 Mn. A grant
there is a product developed by a company. Can company apply for this on behalf of that product?
Only if the company owns the products. If the product done for a client’s requirement, the company cannot apply for the grant.
In most cases companies below 3 years in ICT sector are considered as startups. We are in our third year now and we already export IoT& robotics related ed-tech tools. Can you consider startups with reasonable performance within 3 years for this scheme?
No. They suppose to apply in next round of assistance when they fulfill the eligibility criteria.
Is there should be a minimum of 16 million turnover per year to be eligible to this program?
That is the categorization for SME.
Any restrictions on no of employees ?
No restriction. But the company should have permanent employees
Our current annual turnover is less than half of million. Are we eligible for this beside to that side?
Is there a minimum turnover for a startup?
No. But they should earn considerable revenue which is appear in their financials
Regarding the legal status dropdown list in the first page of the application, what we have to select for a private limited company
Can we apply for more than one product?
No. one can apply for a one product
It is possible to share the pdf application ?
You can download it from the application page
Should we complete the project before 31st of October 2022?
Yes. In order to reimburse the project cost, the invoices should submit in advance.
Is it mandatory to be 100% local? or is it ok to 80% local?
No. we are assisting to 100% local companies.
What we expect is to market the product globally. if we failed to do this from this grant, what will be next?
You are not supposed to obtain full funds from this grant. We expect your investment component to make this a success. Also, a field expert is there to assist you to avoid such a risk.
Do we need to apply only in one category or can we propose in more than one category?
Multiple applications are not allowed from a company.
Our product is solely software based. We need to improve the product to reach export market, hence we will need to recruit more software engineers.
This grant is not to cover working capital. Read the instructions carefully to understand the grant components.
Does the grant provide funding for recruitments?
Ms. Ravindi Ranaraja- Assistant Director
Mr.Dinesh Attanayaka- Export Promotion Officer