SME Loan Recovery Suspension: CB To Issue Directives

The Central Bank of Sri Lanka is to issue directives to the banking sector on the concessionary loan package proposed by the government to uplift Small and Medium Scale Enterprises (SMEs) with a faulted business having failed to repay their loans. The concessionary loan package was proposed under the instructions of President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa.

“According to the concessionary loan package, the entrepreneurs blacklisted by the Credit Information Bureau shall be able to obtain a loan not less than Rs.300 million each,” Finance Ministry Secretary S.R. Attygalle told the media yesterday.“The concessionary loan package shall also include several more directives beneficial to the said entrepreneurs,” Attygalle also said.

“In accordance with the new directives, regulations pertaining to non-performing or default loans shall behold. Auctioning of assets for which the loans are burrowed against shall not take place as well,” he added. Secretary Attygalle also said that the concessionary loan package shall make space for entrepreneurs to restart the closed down businesses or rejuvenate businesses that are going to the serious financial crisis.