Sri Lanka’s Central Bank has decided to extend the deadline for a loan moratorium and new credit program for small and medium scale enterprises (SMEs) to February 10, a senior CB official said.
Deputy Governor H. A. Karunaratne told a media conference convened to brief journalists on Monetary policy review that the deadline was extended from January 31, and a new circular with guidelines will be issued soon
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He said SME loans make up 12-13 percent of the 8 trillion rupee total credit extended.
The central bank, following directions from the president and prime minister has directed commercial banks to extend a one year loan moratorium for both performing and non-performing loans of SMEs , to spur economic growth.
SMEs make up over 70 percent of Sri Lanka’s businesses and it , contributes 52 percent to gross domestic product and provides 45 percent of all employment.
Sri Lanka’s Confederation of Micro, Small and Medium Industries (COSMI) has called for the deadline of the landmark loan moratorium for SMEs offered by the Government to be extended as most companies would struggle to reach the existing deadline of 31 January, a statement by the Industry and Commerce Ministry said yesterday.
“We praise the Government for its determined action last December to revive domestic SMEs by suspending recovery of loans obtained by the sector,” said COSMI Founder President Nawaz Rajabdeen.
“However, there is a catch – the deadline for submitting business plans and reports to banks to obtain the above rebate on the moratorium is 31 January.
These documents are comprehensive and most Sri Lankan SMEs are simply not capable of completing them by the 31 January deadline. Many SMEs reached out to us to call for an extension from the Government, he added.
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