An Echelon Media Company
Monday June 3rd, 2024

Bank loan concessions for SMEs in budget: Sri Lanka president

ECONOMYNEXT – Sri Lanka’s president has said he would address concerns of small and medium-scale industrialists in the upcoming budget, aiming to strengthen Sri Lanka’s export-oriented manufacturing economy.

“In the upcoming budget, we aim to introduce measures that provide bank loan concessions to support small and medium-scale industries,” Ranil Wickremesinghe said in his address at the National Industry Excellence Awards 2023, which took place yesterday (1) at the Nelum Pokuna Theater in Colombo.

Wickremesinghe added that a substantial portion of the budget will also be allocated to debt repayment and interest.

“Failure to meet these obligations could push us back into the old, precarious situation. Therefore, safeguarding our currency and fulfilling our loan obligations is of paramount importance,” Wickremesinghe was quoted as saying by his media office.

“In the past, when there was a budget shortfall, the solution was to instruct the central bank to print more money. This approach is no longer legally permissible and obtaining loans from banks has also become a challenge.

“To ensure our financial stability in the coming year, we must significantly boost our income. We have set specific revenue targets that we must work diligently to achieve.”

Wickremesinghe said it was necessary to gain the trust of private and multilateral creditors and “reassure them of our commitment to loan repayment. This commitment must be ingrained in our actions.”

“We had to make the difficult decision to raise the VAT to 18 percent yesterday (31). Such decisions are never easy for any government. However, failing to take these measures would cast a shadow on everyone’s future.”

“Through this decision, we can generate much-needed revenue to support small and medium-scale industries by repaying loans to banks. Without this step, these industries would face collapse, which puts industrialists in a challenging position.”

Wickremesinghe recalled the challenges faced last year. “At that time, there were numerous uncertainties about the sustainability of our industries. The absence of electricity and the difficulty in obtaining bank loans had led to the closure of thousands of businesses.”

“It’s remarkable to see a substantial number of individuals reinvigorating their industries and achieving success. Small and medium-scale industries have made a comeback in a relatively short period.

“Some issues remain unresolved, particularly concerning bank loans and market access. Our foremost priority is to address these concerns.”

At the start of 2023, the country’s economic growth rate was a negative 0.7%. “Today, it has improved to 0.5%, with further progress expected next year. This leaves us with a fundamental choice of whether to advance or regress.” (Colombo/Nov 2/2023)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

Continue Reading

UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

Continue Reading

300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

Continue Reading