News
Central Bank treading a thin line on continuation of moratoriums
By Sanath Nanayakkare
The Central Bank of Sri Lanka is not in a position to put pressure on commercial banks to offer moratoriums continuously as there was another side to the loan repayment saga, the bank’s Deputy Governor Ms.Yvette Fernando said yesterday.
“I appeal to the borrowers who can pay, to pay their loans for their own best interests. And those whose income generation has been truly affected due to the ongoing pandemic would hear an announcement from the Central Bank in the coming weeks for a different arrangement, Fernando told the media at an online forum subsequent to the CBSL Monetary Board’s monthly monetary policy review meet.
The Deputy Governor added: “I think we have been in moratoriums for about one year. We need to always remember that moratoriums have also the other side of it. When it comes to financial institutions, they have a continuous obligation to make payments to their depositors. So even as the Monetary Board and the Central Bank, we are not in a position to tell the banks continuously to continue these moratoriums. However, considering the situation, Tourism and Passenger Transport sectors are still in moratoriums with some adjustments until September. But based on the more recent situation we are going through – we have already started discussions with the banks and the Finance House Association to see how best or what kind of facilitation we can give these borrowers because we understand that there can be payment delays because of the culture of certain businesses and as a result their income generating avenues have been disturbed.
“And by all means, any bank will definitely be in a favourable way because banks also want their investments or the loans to be paid on time or avoid complete defaults. The discussions we have had with the banks in this regard have been favorable, but we are not at this point looking at a complete moratorium because I think we cannot do this when we carefully consider the point of view of the banks and finance companies also. We have to understand the fact that these banking and non-banking sector companies are operating at different levels and so they don’t have the same capacity to go through these kinds of moratoriums continuously. So we have to address that.
‘These discussions are ongoing and most probably very soon we will be able to announce something that will help the really affected borrowers also. I kindly would like to say that anybody who can pay or in a position to pay their loans should continue to do so because it is in their best interests to do so. Your delaying the payment of a loan means; there’s going to be some additions to it, so it’s in your best interests to pay while you can. But for those who are really affected, we are in the process of looking at it and we will make some announcement.
‘But broadly speaking, we are taking the position that it is the bank and the borrower who could practically agree on a suitable arrangement. One year into moratoriums, the financial institutions also know about the nature of their customers and what kind of disturbance they encountered on the ground. With that knowledge, we are looking to issue instructions to the banks in this regard.’
The National Business Facilitation Centre (NBFC), which is being established under the Presidential Secretariat with the aim of removing administrative and regulatory barriers that exist among government institutions in relation to investment and industry and expediting these processes, will be opened tomorrow (22).
The centre is being established on the President’s initiative with the aim of bringing about a positive transformation in the industrial sector. The centre will provide solutions to issues that arise in dealing with the government machinery when starting and operating a business, while also coordinating with the relevant government institutions to provide the necessary facilities.
The “ViYASA” National Business Facilitation Centre (NBFC) has been established at Building C-80, Hector Kobbekaduwa Mawatha, Colombo 07, and is headed by Senior Additional( Secretary to the President, Seevali Arukgoda.
The centre will be opened under the patronage of Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando and Minister of Industry and Entrepreneurship Development Sunil Handunnetti, with the participation of Secretary to the President Dr Nandika Sanath Kumanayake.
The website https://nbfc.presidentsoffice.gov.lk is also scheduled to be officially launched on the occasion.
President’s Media Division)
Latest News
Court of Appeal Judge M. Sri Mevan Anthony Edirimannasuriya Corea appointed as Acting President of the Court of Appeal
President Anura Kumara Dissanayake has appointed Court of Appeal Judge Mayadunna Sri Mevan Anthony Edirimannasuriya Corea as the Acting President of the Court of Appeal.
The appointment has been made as President’s Counsel Nalin Rohantha Abeysuriya, who currently serves as President of the Court of Appeal, will be overseas until the 24th.
Accordingly Judge Mayadunna Corea was sworn in as Acting President of the Court of Appeal before President Anura Kumara Dissanayake at the Presidential secretariat this morning (21).
Secretary to the President Dr Nandika Sanath Kumanayake was also present at the occasion.
(President’s Media Division)
Latest News
President instructs expediting further measures concerning Sivarasa Anojan, sentenced to death in Saudi Arabia
A discussion to review the further measures that could be taken regarding Sivarasa Anojan, a young Sri Lankan national who has been sentenced to death in Saudi Arabia, was held at the Presidential Secretariat this afternoon (21), under the patronage of President Anura Kumara Dissanayake.
The discussion focused on the measures taken to date concerning Sivaraasa Anojan and the further diplomatic and legal steps that could be pursued. Attention was also given to expediting the necessary further measures that could be taken to secure his release.
President Anura Kumara Dissanayake instructed officials to continue the necessary diplomatic engagement with the relevant authorities in Saudi Arabia and to maintain close and continuous involvement in all further measures concerning the case.
Reaffirming the Government’s continued attention to the safety and welfare of Sri Lankans living and working overseas, the President also stressed the need for the relevant ministries and institutions to work in close coordination and pursue all possible measures that could be taken in connection with the case.
Deputy Speaker Rizvie Salih, Deputy Minister of Religious and Cultural Affairs Muneer Mulaffer, Governor of the Western Province Hanif Yusoof, Secretary – Ministry of Foreign Affairs, Foreign Employment and Tourism Aruni Ranaraja, Secretary to the Ministry of Defence Air Vice Marshal Sampath Thuyacontha (Retd), Attorney General Parinda Ranasinghe and officials of the Ministry of Foreign Affairs, Foreign Employment and Tourism were also present at the discussion.
(President’s Media Division)
“ViYASA” National Business Facilitation Centre (NBFC) to be opened tomorrow (22)
Court of Appeal Judge M. Sri Mevan Anthony Edirimannasuriya Corea appointed as Acting President of the Court of Appeal
President instructs expediting further measures concerning Sivarasa Anojan, sentenced to death in Saudi Arabia
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