Friday Nov 29, 2024
Friday Nov 29, 2024
Friday, 29 November 2024 02:15 - - {{hitsCtrl.values.hits}}
Deputy Minister of Finance and Planning
Dr. Harshana Suriyapperuma
The Government yesterday informed Micro, Small and Medium Enterprises and Entrepreneurs (MSMEs) that the ongoing freeze on parate action will be extended further from the original expiry slated for 15 December.
The assurance was given during a meeting chaired by Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma with representatives of MSMEs. The Government will present a Parliamentary Act to extend this suspension for an additional six months.
This discussion was part of an effort to bring together the MSME lobby groups, the Ceylon Federation of MSMEs and the National Trade Protection Council.
The Ceylon Federation of MSMEs said the planned move will provide much needed relief to micro, small, and medium enterprises (MSMEs). Necessary information will be obtained from the Central Bank, and further discussions are expected to be held early next week.
The Deputy Minister expressed hope that the extension will benefit a larger number of MSMEs.
Ceylon Federation of MSMEs President Mahendra Perera said the possibility of providing relief to businesses through debt restructuring under lower interest rates was also discussed to help entrepreneurs manage their loans more effectively.
The meeting also focused on finding solutions for businesses that have fallen into non-performing loan (NPL) status due to the impacts of the COVID-19 pandemic and the Easter Sunday attacks. Discussions were held on addressing these challenges.
It was discussed that properties and businesses which were taken over by banks through auctions during the past five years (from 2019 to 2024) should be returned to their original owners, and there should be a process of debt restructuring to facilitate the repayment of these loans. The Central Bank and Ministry of Finance should collaborate to establish this process.
The creation of a successful and sustainable entrepreneurial environment in Sri Lanka was discussed, with the aim of fostering long-term business growth.
A suggestion was made to create a data system to better capture and address the challenges faced by businesses, including both entrepreneurs and MSMEs.
To safeguard domestic MSMEs, it was proposed that registered trade unions from each sector should be included, along with representatives from the Central Bank of Sri Lanka, the Ministry of Industry, and all relevant banks. A committee should be established to discuss and resolve issues faced by MSMEs. The attendees agreed to this proposal and expressed their support.
The officials and the MSME representatives also discussed taxes and tax arrears for domestic MSMEs, including the removal of penalties and providing opportunities for the payment of arrears, including EPF/ETF contributions.
