Govt. to revise debt relief circulars to include tourism sector

Saturday, 8 February 2020 00:00 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

Tourism Minister Prasanna Ranatunga yesterday said that the circulars relating to the Rs. 300 million debt relief package would be revised to include the businesses in the tourism industry.

The decision was taken on a request made by Minister Ranatunga to the Cabinet recently.

The Minister had pointed out to the Cabinet that the entrepreneurs who were engaged in the tourism industry were not covered by the Government’s already-announced debt relief package circulars issued to fast-track the revival of the economy via the critical Small and Medium-sized Enterprises (SMEs) sector.

“President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa have advised to revise the instructions and regulations of the relevant circulars if there is such a problem,” the Minister told Daily FT.

Ranatunga had also pointed out to the Cabinet that the banks were reluctant to extend the debt relief package to the businessmen engaged in the tourism sector, noting that tourism was not clearly stated in the circulars.

In November the Government announced all loans taken up to Rs. 300 million as at 31 December 2019 would enjoy a one-year moratorium on capital repayment while interest would have to be paid.

The freeze on capital repayment is for both performing and non-performing loans (NPLs) with banks having to consider restructuring the latter in addition to freezing the seizure or sale of assets. The interest penalty will be removed on NPLs as well.