President, PM direct all banks to suspend recovery of SME loans

President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, who is also the Minister of Finance, Economy and Policy Development, have issued directives to Chairmen and CEOs of all banks to suspend recovery of loans obtained by the SME sector.

The Government has taken a decision to take up new initiatives to revive SMEs with outstanding debt not exceeding Rs. 300 million in each entity since recently announced tax reform initiatives provide substantial savings to all banks, including the Central Bank. The Government expects the banks to use part of such savings to revive the SME sector on a priority basis.

The directives from the President and the Prime Minister also incorporate redresses to small- and medium-scale paddy millers as well since the Government expects them to re-energise their milling operations to improve the competitiveness in the market, and expects their capacities to be active during the 2019/20 Maha season

This concessionary action will be followed by a comprehensive package coupled with already announced tax concessions designed by the Ministry of Finance, Economy and Policy development and the Central Bank, which will support both the lender and the borrowers, especially from the SME 

sector.