SMEs get targeted lending facilities on priority basis  

Sri Lanka Micro, Small and Medium Scale Enterprises (MSMEs) will be getting targeted lending facilities for its priority sectors in consultation with banks, Central Bank (CB) announced on Tuesday.

The Monetary Board of the CB has decided to introduce priority sector lending targets for this sector to support a broad based economic revival, CB officials disclosed.

Director of Economic Research of the CB Dr. Chandranath Amarasekara told the monetary policy review media conference conducted online, that this programme will be started for MSMEs as it was  the mainstay’ of the economy.

Directed lending will be provided by banks on the directions of the Central Bank identifying priority sectors in MSMEs, he added.

The Monetary Board, having noted the reduction in overall market lending rates during 2020, stressed the need for a continued downward adjustment in lending rates to boost economic growth.

This decision was taken in the absence of demand driven inflationary pressures, particularly considering the significant levels of excess liquidity prevailing in the domestic money market, he added.

Answering a question raised by a journalist, Deputy Governor Yvette Fernando noted that the moratorium for loans granted to affected business enterprises and individual has been extended till March this year.  

The Central Bank has also set up a separate department to find redress for any grievances which will arise in rescheduling the repayment of loans in consultations with relevant banks and financial institutions, she disclosed. (BS)