Export Development Board welcomes relief measures provided for exporters

The Sri Lanka Export Development Board (EDB) welcomes moratorium on debt capital and interest and concessionary working capital scheme extended to export-related enterprises that are adversely impacted by the COVID-19 pandemic. 

The concessions recently announced by the Central Bank (CB) include a six-month moratorium on debt capital and interest, and working capital loans at 4 percent interest rate. 

The concessionary financing are to be granted through commercial banks, specialised banks, finance companies and leasing companies.

Further, investment loan facilities, not exceeding Rs.300 million, are also agreed to be provided at a concessionary rate for business expansion. 

“This will give relief to borrowers who have been hit hard by overseas and local lockdowns. The EDB is hopeful that the financial relief measures given will help the export sector tide over the extremely critical situation it will face over the next few months,” an EDB statement said.

The EDB sought relief for exporters via a written request to President Gotabaya Rajapaksa on March 20th. 
A number of industrial sectors including apparel, IT, tea, spices, plantations, and related logistic suppliers are eligible for these concessions. 

Further, small and medium-sized enterprises (SMEs) with a turnover of less than Rs. 1 billion involved in a very wide range of sectors will also be beneficiaries.

In addition, it was also decided to waive off the penal interest charged up to March 25 by the concerned financial institutions. 

However, EDB said it remains concerned over the uncertain situation exporters face in securing orders in the coming months as the COVID-19 pandemic has disrupted businesses and social activities across the globe, including Sri Lanka’s key export markets.