A special meeting held at the Presidential Secretariat on November 11 aimed to develop relief measures for Small and Medium Enterprises (SMEs) struggling under financial burdens. Led by Senior Additional Secretary to the President for Finance and Economic Affairs, Mr. G. N. R. D. Aponsu, the meeting brought together officials from the Ministry of Finance, Central Bank of Sri Lanka, and the Sri Lanka Banks’ Association to address the ongoing financial challenges SMEs face due to loan commitments.
Key Highlights
- Suspension of Debt Recovery: Recognizing the impact of loan recovery pressures on SMEs, the suspension of debt recovery under the Parate law has been in effect, with the current suspension period set to end on December 15. The meeting focused on the possibility of extending or adjusting this suspension to provide further relief.
- Enhanced Bank Support for SMEs: Officials explored potential avenues for increased banking support to help SMEs stabilize and increase productivity, identifying the need for strategic cooperation between banks and SMEs.
- Comprehensive SME Loan Report: A detailed report on existing SME loans from banks is being compiled to evaluate the scope of relief required. This document will serve as the foundation for crafting future relief packages.
- Evaluating Temporary Relief Mechanisms: The Central Bank and commercial banks are assessing the requirements to uphold the temporary debt recovery suspension, ensuring it effectively addresses SME needs without compromising financial sector stability.
Conclusion
This initiative underscores the government’s commitment to mitigating financial strain on SMEs and safeguarding their role in economic growth. With input from key industry representatives, the effort to extend relief measures for SMEs aims to enhance business resilience and overall economic productivity in Sri Lanka.
Last modified: November 12, 2024
