The government must support and egg on the Small and Medium Sector Entrepreneurs (SME) as they would play a major role towards acheving a 6.5% economic growth target, State Minister for Development Banks and Loan Schemes Shehan Semasinghe said. This was the main reason that the debt moratorium was offered to them.
He was speaking at a Finance Ministry organized seminar to update the knowledge of the SME sector on the government debt moratorium offered and also on the Credit Information Bureau of Sri Lanka (CRIB) last Friday at Anuradhapura. The event was well attended by officials of CRIB, State and private banks and SME sector in the area.
The previous government did not listen to grievances of the SME sector which resulted in the economic growth rate slipping down to record low of 1.6%.
The Minister said that President Gotabaya Rajapaksa’s vision is to develop the SME sector as the President considers SME’s as a key driver towards achieving an economic growth of 6.5%. “This government listens to people and knows their issues. This is why the debt moratorium was introduced and even the time to send in applications was extended until February 10.”
He explained that due to the Bond scam by the previous government the interest rate which was at 8% increased to 16% which made the business sector redundant. He said that the government is now ready to rectify these errors and allow the SME sector to recommence their businesses by obtaining credit at low interest rates as well as postponing their debt repayments.
Semasinghe said that the government is even ready to adjust the ‘SME financial relief package’ according to requests and suggestions made by the public.
The Minister said that they will hold more awareness programs and the next one would be held in Matara.
General Manager, CRIB, Nandi Anthony also explained that CRIB is merely information providing agency and not a body that spies on peoples financial transitions. “There are over 8 million names in the CRIB and when even a person signs as a Guarantor his/her name is in the CRIB. This does not the discriminate the guarantor from taking any credit from a bank.”
He also said that the banks have the final say to award credit to a person irrespective of him or her being listed in the CRIB.
“People should not fear CRIB as we are only an information providing body for banks.”
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