President, PM direct all banks to suspend recovery of SME loans up to Rs 300 million

Directives have been issued by the President and the Prime Minister to Chairman and CEOs of all banks to suspend  recovery of loans obtained by the SME sector.

The Government has taken a decision to take up new initiative to revive SMEs. 

As part of this initiative, outstanding debt not exceeding Rs 300 million in each entity since the recently announced tax reform initiatives, are to provide substantial savings to all banks including the Central Bank of Sri Lanka.

The Government expects the banks to use part of such savings to revive the SME sector on a priority basis, a statement from the Finance Ministry said.

The directives from the President and the Prime Minister who is also the Finance Minister also incorporates  redresses to small and medium scale paddy millers as well.

The government expects such sectors to re-energise their milling operation to improve the competitiveness in the market and expects their capacities to be active in the 2019/20 Maha season.

This concessionary action will be followed by a comprehensive package coupled with already announced tax concessions designed by the Ministry of Finance, economy and Policy development and the Central Bank of Sri Lanka which will support  both the lender and the borrowers especially the SME sector.