With the aim of intensifying listless economic growth by boosting demand and production the Finance Ministry has unveiled financial bonanza immediately begin implementing several Budget proposals .
Th these financial facilities have been aimed at providing relief to public sector workers, Small and Medium Enterprises (SMEs), youth, dairy farmers and students. Treasury sources disclosed.
These relief measures have been announced immediately following the announcement by S&P Global Ratings (S&P) downgrading Sri Lanka’s credit rating to “CCC+/C”.
The global rating agency has downgraded the country citing concerns that risks to the island nation’s debt servicing capacity have risen as the COVID-19 pandemic squeezes the government’s ability to generate earnings.
The government is distributing this public money either people’s savings or treasury funds with money via banks, economic analysts said adding that the present administration should divulge the revenue proposals hidden in the budget.
These initiatives included the spearheaded by the Budget proposal to introduce a maximum interest rate on mortgage-backed housing loans at interest rates of 3 percent and 7 percent from licensed banks.
In addition, public sector employees can get loans at 4% interest to install solar panels while SMEs seeking to invest in rooftop solar can avail themselves of this same facility from 1 January,
“Through this measure a public sector employee can obtain a loan of about Rs. 750,000 at a very reasonable interest rate to be repaid over 10 years.
The Government will also make provisions to make available $ 100 million worth of working capital loans to COVID-19 hit SMEs so they can continue their businesses.
“Young entrepreneurs can obtain up to Rs. 500,000 at 4% interest with no collateral and only based on their business proposal fromj the Regional Development Bank (RDB).”
Dairy farmers can also borrow up to Rs. 1 million at preferential interest rates to develop their business while public sector workers can obtain up to Rs. 10 million at a maximum interest rate of 6.25% to purchase State-constructed apartments in urban or suburban areas. These loans will be given by Bank of Ceylon, People’s Bank and National Savings Bank.
The Finance Ministry further said Buddhist monks studying in pirivenas, students and other members of the clergy living in low income rural areas will receive vouchers to purchase shoes.
The Agriculture Ministry has decided to provide Rs.700 million for 2000 families, to cultivate fruits for the export market, with the aim of uplifting the economy of the poor farming community.
(LIN)