The Government should request international donors to defer Sri Lankan foreign debt repayments for six months and offer this benefit to Sri Lankan banks. As a result local banks could then be in a better position to defer payments due to them from local business community. These views were expressed by Secretary of the Colombo Business Association, Chaminda Vidanagamage.
“Due to Easter Sunday blasts and downturn in tourism there is a negative economic climate which is reflecting badly on the SME sector.”
Sales in shops have dropped and owners were forced to retrench staff while some shops were closed down in Galle Road and Duplication road as owners could not pay high rentals due to low income. Imports too have declined.
“Though we are facing financial issues, we still have to service out debts to banks and pay various taxes and this is not possible due to low sales,” said President Colombo Business Association, Dr. D. Venkateshwaran.
Colombo Business Association members met Governor Central Bank, Indrajit Coomaraswamy yesterday and brought up this issue. “The Governor promised to take up this issue with relevant officials. What we want is a similar concession offered to the tourism sector for at least six month. If this grace period is not offered to the SME business sector we will be forced to retrench staff and close our businesses. In addition it will also lead to huge bank withdrawals and default of payments to the leasing sector,” he added.
There will also be lot of borrowing from the informal sector to settle loans at high interest rates. He said that the government while looking after the interest of business sector should also comes up with a similar concession package to the banking sector for their survival.
Artistes, musicians and several other sectors to are facing similar issues and their association is now in the process of roping them to make a bigger representation to the government.
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