Urgent call for MSME loan restructuring to prevent industry crisis

Monday, 24 June 2024 02:56 - - {{hitsCtrl.values.hits}}

Ceylon Federation of Micro, Small, and Medium Entrepreneurs Chairperson Shashika de Silva

Ceylon Federation of Micro, Small, and Medium Entrepreneurs Chairperson Shashika de Silva has urgently called for the restructuring of MSME loans to avert an impending crisis.

Speaking at a press conference on Friday, de Silva highlighted the critical need for immediate action to support MSMEs, warning of severe consequences if their financial burdens are not addressed.

“We have a responsibility to bring focus to issues faced by MSMEs,” de Silva stated. She emphasised that while the Government has taken steps to temporarily halt parate executions, the ongoing restructuring phase in Sri Lanka has overlooked the dire situation of MSMEs.

De Silva noted that MSMEs are currently weighed down by Rs. 1.6 trillion in third-stage loans. “Restructuring MSMEs is essential, but it cannot happen if we do not address the Rs. 1.6 trillion in loans. Among these, Rs. 250 billion are attributed to non-wilful defaulters,” she said. “If this issue is ignored, MSMEs will face severe difficulties after 15 December, when parate executions resume.”

Highlighting the economic strain, de Silva remarked, “People in the local market have no money, forcing all MSMEs to look towards the export market. However, increased electricity and other costs make gaining a competitive edge challenging.” She urged both the Government and the private sector to collaborate in resolving these issues to support the growth and sustainability of entrepreneurs.

“If the entrepreneurial network is broadened, taxes on both entrepreneurs and the general population can be reduced. We must understand all sides and work together to find solutions,” de Silva added. She called on all entrepreneurs in need of support to come forward for loan restructuring and other assistance. “We have informed relevant Government officials about the importance of restructuring MSMEs, and we urge all entrepreneurs who need support to come forward.”