The Sri Lankan government announced it is intensifying its efforts to provide relief for Small and Medium Enterprises (SMEs), which are currently facing significant financial challenges(relief for SMEs). This decision was made during a high-level meeting that took place yesterday, chaired by Senior Additional Secretary to the President for Finance and Economic Affairs, G.N.R.D. Aponsu. The meeting involved key officials from the Finance Ministry, the Central Bank of Sri Lanka (CBSL), and representatives from major commercial banks.
The focus of the discussions was on the various financial difficulties that SMEs are experiencing, particularly concerning their loan obligations. One of the critical topics was the temporary freeze under the Parate law, which prevents banks from taking legal action to recover debts from SMEs. This suspension is set to end on December 15, prompting authorities to consider what measures can be implemented before this deadline to continue supporting these businesses.
During the meeting, the President’s Media Division (PMD) highlighted that a comprehensive approach is being formulated to aid SMEs. Part of this strategy involves compiling a detailed report on the loans that SMEs have obtained from banks. This report will help shape future relief measures tailored specifically to the needs of these businesses.
relief for SMEs
Moreover, the CBSL along with various commercial banks are currently reviewing possible steps to extend the suspension of debt recovery actions against SMEs under the Parate law. The aim is to provide ongoing support and enhance productivity within the economy.
Notable attendees of the meeting included CBSL’s Director of Bank Supervision, R.R.S. De Silva Jayathilake, and Senior Assistant Director A.M.A.D. Amarakoon. Also present were several representatives from the Sri Lanka Banks’ Association (Guarantee) Ltd., including Chairman and CEO of Standard Chartered Bank Sri Lanka, Bingumal Thewarathanthri, and Secretary General Indrajith Boyagoda. Key figures from Union Bank, Sampath Bank, Bank of Ceylon, Commercial Bank, and HNB were also in attendance, reflecting the importance of this initiative to the broader financial community.
This gathering of financial leaders underscores the government’s commitment to supporting SMEs during these challenging times. By collaborating with major banks and financial institutions, the government hopes to develop effective strategies that will provide substantial relief to these vital contributors to the Sri Lankan economy. The outcomes of this meeting are expected to pave the way for sustainable growth and help SMEs navigate through their current financial difficulties, ensuring a more stable and prosperous economic environment.
