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3-Month grace on loan repayments for disaster victims: Central Bank
View(s):Central Bank “policy decision” for early revival of disaster-affected economies
By Damith Wickremesekera
The Central Bank (CB) directed all licensed banks in Sri Lanka to grant a three-month moratorium on repayment of loans, to customers in flood-affected areas. The CB is to extend this “policy decision” to other areas too. This is for customers in areas found to be part of the supply chain related to the flood-affected areas.
The CB decision comes following an extensive assessment of flood-hit areas. The objective, an official said yesterday, was to revive the economy in the flood-hit areas, so normalcy could return early.
Various State agencies are conducting surveys to ascertain the extent of the damage. The Road Development Authority (RDA estimates that over Rs 6 billion would be required to rebuild badly damaged road networks.
According to RDA Director of Maintenance Management, Kamal Amaraweera, the worst hit is Southern, Western and Sabaragamuwa Provinces. The damage to roads in the SP has been estimated at Rs 3.7 billion, Rs 1.8 billion in Sabaragamuwa and Rs 1.3 billion in the WP. The worst hit is a 70 km-stretch on the Galle-Deniyaya Road.
The Ceylon Electricity Board is busy assessing the costs to restore power supplies. A similar survey is also being conducted by Education authorities to assess damage to schools now being used as transit camps.
These developments come as the Govt sought help from international agencies for further funding of economic revival activities of flood and landslide affected areas, and also for reconstruction.
Representatives of the IMF, World Bank, ADB, UNDP, OPEC Fund for Development, Kuwait Fund for Arab Economic Development and JICA are among some 25 invitees for a meeting scheduled for next Tuesday at Temple Trees.