BOC receives post-COVID support applications worth Rs. 28.5 b

Wednesday, 5 August 2020 03:10 - - {{hitsCtrl.values.hits}}

Chief Guest Central Bank Governor Prof. W.D. Lakshman lighting the traditional oil lamp at BOC’s 81st anniversary celebrations yesterday while BOC Chairman Kanchana Ratwatte looks on - Pic by Lasantha Kumara

Rs. 9 b lent so far out of Rs. 16 billion applications submitted to CB
A further Rs. 12.5 b worth applications being processed
BOC Chairman says target is to extend financial support worth Rs. 50 b to revive businesses, especially SME sector
Debt moratorium provided tops Rs. 301 b mark among over 360,000 customers

Bank of Ceylon has received Rs. 28.5 billion worth of applications seeking concessionary financial support to tide over COVID-19 difficulties under the Central Bank initiated schemes. Of the applications received, Rs. 16 billion worth have been submitted to the Central Bank, of which Rs. 9 billion has been disbursed.

A further set of applications worth Rs. 12.5 billion are being processed by the BOC at present. These figures were made public by BOC Chairman Kanchana Ratwatte during his speech at the Bank’s 81st anniversary yesterday. Central Bank Governor Prof. W.D. Lakshman was the chief guest.

The Bank of Ceylon’s Chairman, Board of Directors, General Manager, Corporate and Executive management with the Bank’s other officials and customers also participated. Ratwatte said BOC hopes to lend around Rs. 50 billion as post-COVID financial support to revive the economy, especially the SME sector.

The value of debt moratorium provided by BOC was Rs. 301.6 billion to 361,409 applicants. Speaking further, Ratwatte said that despite the Easter Sunday terror attacks and their impact, along with depressed business conditions which forced economy to grow by only 2.4%, BOC in 2019 achieved a Rs. 30 billion pre-tax profit.

“Following the election of President Gotabaya Rajapaksa, the Government introduced a stimulus package to revive the economy in late 2019 and early 2020, but unfortunately, the COVID-19 pandemic erupted, causing a serious blow to a meaningful and quicker revival,” Ratwatte opined.

He commended the Government and the Central Bank for swiftly offering debt moratorium and credit guarantee schemes to help enterprises and individuals to overcome the challenges arising out of the COVID-19 pandemic.

With regard to improving the country’s foreign reserves, Chairman Ratwatte said BOC has taken several initiatives, including sourcing foreign funding lines at concessionary terms, with the most recent being $140 million from China Development Bank. “We have lined up a few more funding arrangements,” he added.

The BOC Chairman also said inward remittances to the Bank has been steady despite the COVID-19 impact globally. Ratwatte’s message to the BOC staff was the need to step up support to the SME sector, which is the backbone of the country’s economy, and has a greater socio-economic impact, especially at rural level.