Govt. says prioritising relief for SMEs

Tuesday, 12 November 2024 03:04 - - {{hitsCtrl.values.hits}}

Senior Additional Secretary to President for Finance and Economic Affairs chairs meeting with Finance Ministry, CBSL officials, and commercial banks
Considers potential steps to be taken before expiry of freeze on Parate law action on 15 Dec. to further support struggling SMEs
Govt. to compile report on loans taken by SMEs from banks to design future relief measures

The Government yesterday said it is prioritising relief for Small and Medium Enterprises and Entr-epreneurs (SMEs) following a meeting with officials of the Finance Ministry, the Central Bank of Sri Lanka (CBSL), and representatives of commercial banks yesterday.

The President’s Media Division (PMD) said Senior Additional Secretary to the President for Finance and Economic Affairs G.N.R.D. Aponsu chaired a top-level meeting to address relief measures for SMEs facing financial challenges. The meeting included officials from the Finance Ministry, the CBSL, and Sri Lanka Banks’ Association (Guarantee) Ltd.

The discussions focused on the financial difficulties encountered by SMEs due to loan obligations.

Currently, debt recovery processes under the Parate law have been temporarily suspended for SMEs, with this suspension set to expire on 15 December. The meeting considered potential steps that could be taken before the expiration date to further support struggling SMEs.

The PMD said attendees examined ways for the banking sector to provide additional support to SMEs and boost productivity in the economy. During the discussions, it was also decided to compile a comprehensive report on the loans taken by SMEs from banks. This report will serve as a basis for designing future relief measures.

Additionally, the CBSL and various commercial banks are evaluating the steps needed for the temporary suspension of debt recovery under the Parate law for SME loans.

The discussion was attended by several key officials, including CBSL Director – Bank Supervision R.R.S. De Silva Jayathilake, and Senior Assistant Director A.M.A.D. Amarakoon.

Also present were representatives from the Sri Lanka Banks’ Association (Guarantee) Ltd., Chairman and Standard Chartered Bank Sri Lanka CEO Bingumal Thewarathanthri, Secretary General Indrajith Boyagoda, Union Bank CEO Dilshan Rodrigo, Sampath Bank Senior Deputy General Manager Manoj Akmeemana, Bank of Ceylon Deputy General Manager Sampath Perera, Commercial Bank Assistant General Manager Nalin Samaranayake, and HNB Chief Recovery and Rehabilitation Officer Nirosh Perera.