Banks grant over Rs.25bn worth debt capital moratoriums to SMEs

The banking sector has facilitated debt capital moratorium in excess of Rs.25 billion for over 1000 struggling small and medium-sized enterprises (SMEs) under the SME recovery plan, the Treasury revealed.  

Further, the assistance package has also been extended to cover foreign currency-denominated loans targeting SME exporters and tourism sector stakeholders who have been in particular impacted by the COVID-19 pandemic.

“This package which was only for LKR denominated loans will now be extended to cover foreign currency-denominated loans as well, so as to support SME exporters and in particular, those in the tourism sector effected by the COVID-19 pandemic and the Easter Sunday Terrorist attacks of 2019,” the Treasury stated. 

Further, the government has decided not to revise fuel prices in the local market despite record low oil prices in the world market, and instead low cost of imports in fuel will be transferred through adjustments in the price of essential food items and credit support to businesses, aiming to create a better multiplier effect in the economy.

“In fact, in 2015 with the slashing of fuel prices, the country saw an influx of motor cars which created multiple issues ranging from BOP issues to road congestion and environmental issues,” the Treasury reasoned.