Monday Nov 11, 2024
FT
Monday Nov 11, 2024
Tuesday, 21 May 2024 00:02 - - {{hitsCtrl.values.hits}}
wtate Minister of Finance Shehan Semasinghe announced yesterday that the strengthening of the banking system, driven by recent economic progress, will positively impact the promotion of small and medium enterprises (SMEs) in the country. He attributed this to increased lending capacity and lower interest rates.
Speaking at the Development Lottery Board’s sales comparison program at the Anuradhapura District Secretariat, Semasinghe highlighted the benefits of economic improvements on various sectors.
He noted that Government institutions, such as the Development Lottery Board, are now meeting their revenue targets and progressing successfully due to the involvement of private sector entrepreneurship as sales agents.
“Instead of solely running State-owned enterprises (SOEs), connecting them with the private sector and committing to common interests is more effective,” Semasinghe said.
He pointed out that this strategy has transformed the Development Lottery Board from a loss of Rs. 750 million in 2022 to a profit of Rs. 450 million in 2023.
Recalling that during the economic crisis, banks prioritised loans to support basic needs such as oil, gas, and electricity, which limited resources for encouraging entrepreneurship, the State Minister acknowledged that the high-interest rates, which peaked at 30%, were not conducive to private sector growth.
“However, with the current economic stabilisation, the banking sector is better positioned to support SMEs, which play a critical role in the country’s economic landscape. The reduced interest rates are expected to encourage more private sector investments and entrepreneurship,” he said, adding that development of SMEs is crucial for sustained economic recovery and progress.
