The Leader of a frontline Industrial Chamber yesterday proposed to the Government that the working capital of Rs. 50 Billion which was meant for disbursement to private sector businesses though the Central Bank, was nowhere enough and to increase it to Rs. 300 Billion-Rs. 400 Billion.
This proposal comes in the wake of the Government directing the Central Bank to provide through state and private commercial banks a Rs. 50 Billion.
No bank has yet disbursed any of these loans that the Government has directed , Chairman of the Ceylon National Chamber of Industries (CNCI) Ruwan Edirisinghe told the Daily News yesterday.
He said that the Government had originally thought of only the small and medium scale industries for support at the time it devised the Rs. 50 Billion package. Therefore, the Government would run the future risk of the future large-scale private enterprises collapsing through a cascading effect, through which, the SMEs would also be affected.
He pointed out that the recommencement of these industries would require far more working capital. The Government has wanted the private sector to commence their businesses expeditiously but no one has been provided with the working capital as of yet.
He also suggested that the Government to defer the statutory payments from the private sector such as taxes and EPF/ ETF for one year.
He also said that the state and private banks should also use a part of the gigantic net profits that they make, to disburse loans to help the existing clients raise capital at concessionary interest rates.
“What we request the Government is for loan capital and not grants,” he stressed.
He also suggested that the Government should repay all the outstanding payments to private sector suppliers and contractors for the services hitherto supplied.
The Leader of a frontline Industrial Chamber yesterday proposed to the Government that the working capital of Rs. 50 Billion which was meant for disbursement to private sector businesses though the Central Bank, was nowhere enough and to increase it to Rs. 300 Billion-Rs. 400 Billion.
This proposal comes in the wake of the Government directing the Central Bank to provide through state and private commercial banks a Rs. 50 Billion.
No bank has yet disbursed any of these loans that the Government has directed , Chairman of the Ceylon National Chamber of Industries (CNCI) Ruwan Edirisinghe told the Daily News yesterday.
He said that the Government had originally thought of only the small and medium scale industries for support at the time it devised the Rs. 50 Billion package. Therefore, the Government would run the future risk of the future large-scale private enterprises collapsing through a cascading effect, through which, the SMEs would also be affected.
He pointed out that the recommencement of these industries would require far more working capital. The Government has wanted the private sector to commence their businesses expeditiously but no one has been provided with the working capital as of yet.
He also suggested that the Government to defer the statutory payments from the private sector such as taxes and EPF/ ETF for one year.
He also said that the state and private banks should also use a part of the gigantic net profits that they make, to disburse loans to help the existing clients raise capital at concessionary interest rates.
“What we request the Government is for loan capital and not grants,” he stressed.
He also suggested that the Government should repay all the outstanding payments to private sector suppliers and contractors for the services hitherto supplied.
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