Support for private sector: Increase disbursement to Rs. 300-400 Billion - CNCI Chairman | Daily News


 

Support for private sector: Increase disbursement to Rs. 300-400 Billion - CNCI Chairman

The Leader of a frontline Industrial Chamber yesterday proposed to the Government that the working capital  of  Rs. 50 Billion which was meant  for disbursement to private sector  businesses though the Central Bank,  was nowhere enough  and to  increase it to Rs. 300 Billion-Rs. 400 Billion.

 This proposal  comes in the wake of the Government  directing the Central  Bank to   provide through  state and private  commercial banks  a Rs. 50 Billion.

  No bank  has yet  disbursed  any of these loans that the Government has  directed , Chairman of the Ceylon National Chamber of Industries (CNCI) Ruwan Edirisinghe told the Daily News yesterday.

 He said that the Government had  originally thought of  only the small and medium scale  industries  for support at the time it devised the Rs. 50 Billion package. Therefore, the Government would run the future risk of   the future large-scale  private enterprises  collapsing  through  a cascading effect, through which,  the SMEs would  also  be affected.   

He pointed out that the recommencement of these industries would require far more working capital. The Government has wanted the private sector to commence their businesses expeditiously but no one has been provided with the working capital as of yet.

 He also suggested that the Government to defer the statutory payments from the private sector such as taxes and EPF/ ETF for one year.  

He also said that the state and private banks should also use a part of the gigantic net profits that they make, to disburse loans to help the existing clients raise capital at concessionary interest rates.

“What we request the Government is for loan capital and not grants,” he stressed.

 He also suggested that the Government should repay  all the outstanding  payments to private sector suppliers and contractors  for the services hitherto  supplied.

 The Leader of a frontline Industrial Chamber yesterday proposed to the Government that the working capital  of  Rs. 50 Billion which was meant  for disbursement to private sector  businesses though the Central Bank,  was nowhere enough  and to  increase it to Rs. 300 Billion-Rs. 400 Billion.

 This proposal  comes in the wake of the Government  directing the Central  Bank to   provide through  state and private  commercial banks  a Rs. 50 Billion.

  No bank  has yet  disbursed  any of these loans that the Government has  directed , Chairman of the Ceylon National Chamber of Industries (CNCI) Ruwan Edirisinghe told the Daily News yesterday.

 He said that the Government had  originally thought of  only the small and medium scale  industries  for support at the time it devised the Rs. 50 Billion package. Therefore, the Government would run the future risk of   the future large-scale  private enterprises  collapsing  through  a cascading effect, through which,  the SMEs would  also  be affected.   

He pointed out that the recommencement of these industries would require far more working capital. The Government has wanted the private sector to commence their businesses expeditiously but no one has been provided with the working capital as of yet.

 He also suggested that the Government to defer the statutory payments from the private sector such as taxes and EPF/ ETF for one year.  

He also said that the state and private banks should also use a part of the gigantic net profits that they make, to disburse loans to help the existing clients raise capital at concessionary interest rates.

“What we request the Government is for loan capital and not grants,” he stressed.

 He also suggested that the Government should repay  all the outstanding  payments to private sector suppliers and contractors  for the services hitherto  supplied.

 


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