Remedial measures will put the economy on track
Many countries have expressed their solidarity and sympathy to Sri Lanka following the Easter Sunday bomb attacks and powerful nations have vouched to provide ‘us’ with intelligence pertaining to terrorism in future, said State Minister of Finance Eran Wickramaratne.
Addressing the business community on the prevailing security situation in the country at the National Chamber of Commerce this week, he said: “We are making every endeavour to restore business activity following the deadly bomb attacks on Easter Sunday.”
The State Minister said that the International Monetary Fund has endorsed the action the government has taken so far and has recommended a grant to the country to stabilise the economy.
He said the Ministry of Finance and the Central Bank are presently engaged with the World Bank to obtain further assistance to the country. Referring to terrorist attacks, he said such attacks have happened in other countries as well including in Belgium, France and in Asian countries like Indonesia. Countries affected by terrorism have been able to restore tourism and businesses in a period of 2-3 years.
“We have had discussions with the Central Bank to provide relief to the tourism sector worst affected by the bomb blasts by providing a moratorium on bank loans obtained by them,” he said.
Under the Enterprise Sri Lanka programme of the Ministry of Finance the government has taken steps to provide loans to the SME sector at very low interest rates to encourage the revival of the economy. Under the programme import of machinery will be exempted from tax.
The State Minister also pointed out that certain groups have been actively engaged in promoting disharmony among communities following the Easter Sunday attacks to exploit the situation to gain political mileage. “We condemn these despicable acts.” Referring to recent cyberattacks in Sri Lanka, he said only one government site was affected while others belonged to the private sector.
Meanwhile several suggestions were brought to the notice of the State Minister by officials representing various industries. Among them was a proposal affecting the poultry industry regarding the high Cess imposed on them and urging the government to bring it down to 10 per cent as the consumption pattern has dropped by 50 per cent. SME sector too has been badly affected due to difficulties faced by them in obtaining further loans from banks and owing to power cuts during the last month. Shipping agents also expressed concern over the present security situation as many passenger ships have bypassed Sri Lanka. Supermarkets scattered all over the country too have been affected as merchandise could not be dispatched to outlets during the curfew period.