Sri Lankan SMEs facing COVID-19 brunt, says COSMI

Friday, 20 March 2020 00:00 -     - {{hitsCtrl.values.hits}}

COSMI Founder President Nawaz Rajabdeen  

 


 

  • Welcomes President’s initiatives, says extending support

 

Sri Lankan SMEs bear the brunt of coronavirus onslaught. “We welcome President Gotabaya Rajapaksa for his initiative to remove taxes from mask imports. Our SMEs face the brunt of coronavirus spread. We also praise his suspension of recovery of loans to businesses and SMEs by banks. Helping SMEs is helping our people,” said COSMI Founder President Nawaz Rajabdeen on 18 March. 

COSMI’s Rajabdeen was welcoming President Gotabaya Rajapaksa’s latest initiatives and also his address to the nation in the wake of the coronavirus issue.

On 17 March, addressing the nation President Rajapaksa said: “I am ordering banks and finance companies a recovery period of six month from the loan facilities taken by businesses, as it is a huge burden on them presently. At the same time, steps are being taken for banks to give capital at four percent interest.”

“More than 60% of enterprises and 40% of employment comes from our SMEs. Therefore SMEs are a key provider of Sri Lankan livelihoods. With the slowdown of economic activities due to coronavirus, SME activities are affected and as a result, their employees too. This means, economically, our SMEs are facing the brunt of coronavirus. In this background, we praise President Gotabaya Rajapaksa for his initiative to suspend recovery of loans to businesses by banks for six months. We also welcome working capital loans at 4% interest. We believe that helping SMEs is helping our people. We with our SMEs therefore are ready to extend our fullest cooperation to the President to revive our SMEs and small industries.”

On 18 March, the government announced the removal of tax on import of masks, sanitisers and disinfectants. The Confederation of Micro, Small and Medium Industries (COSMI) was formed in 2019, and aims to revive and foster the MSME and industry sectors of Sri Lanka.

 

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