CBSL provides relief for creditworthy businesses | Daily News

CBSL provides relief for creditworthy businesses

The Central Bank of Sri Lanka has provided some relief in connection with tax and loan payments to businesses, following a request made by the Colombo Business Association (CBA) in the aftermath of the Ester Sunday attacks.

General Secretary, Colombo Business Association (CBA) Chaminda Widanagamage told ‘Daily News Finance’, that had managed to keep a good record on repayment of the loans and taxes prior to the Easter Sunday attacks were considered for this relief.

He said that this was granted upon a request made by the CBA to the Governor of the Central Bank of Sri Lanka and other high ranking officials to help them revive the economy following the aftereffects of the Easter Sunday attacks. “We commend Governor, Dr Indrajit Coomaraswamy for considering our request and taking an initiative promptly,” he said.

“A draft has also been presented to the President, Prime Minister and the Minister of Finance addressing the issues and solutions regarding the tax and loan payments and requesting appropriate measures to be taken beneficial to them on behalf of the Businesses community in Sri Lanka”, he added.

Thus they have requested for a grace period of one year to pay the current interest and capital till next year, free interest rate (from 2019 Applicable month to 2020 Applicable month) until the Current interest and capital are paid, To provide new capital loan for businesses based on their past records, Relief facility to obtain short term loans and overdraft facilities where currently short term loans and overdraft facilities are limited approved by the bank managers and not to consider CRIB report for more than three or four months outstanding during the current period.

However, the business community has not received the full relief time period, thus necessary actions will be taken to meet the legislators and policy makers of the government of Sri Lanka for betterment of the business community.

“Further, we will be having a meeting with State Finance Minister, Eran Wickramaratne to discuss about a relief package today,” Widanagamage added.

With the Easter Sunday attacks and after effects, all the industries such as hardware and electrical industry, jewellery industry, essential food, textile and film industry were affected.

“Although the major impact was on the tourism sector and its sub sectors, industries like the electrical industry faced a big challenge as they were not able to sell their purchased stock during the season.

Hence they had to face financial issues and paying salaries to their employees. Cheques got returned as the funds were insufficient in their bank accounts”, he said.

Hence, the Governor had advised to provide relief after individually assessing each and every bank account belonging to the trusted businessmen who had repaid their debts appropriately.

Thus a circular stating the relief schemes has been already passed to the banks.


 

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