Business
SMEs call govt. to come up with policy responses to prevent them from going bust
‘Our businesses are more at risk than profit-making banks and financial institutions’, they say
by Sanath Nanayakkare
The National Trade Protection Council (NTPC) which represents over 30,000 Small and Medium Scale Enterprises (SMEs) in the country, a provider of direct employment to over 4.5 million Sri Lankans, says that the normalisation of the economy is paramount for their members to improve their loan repayment capacity.Having met with Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Ceylon on Dec. 29 to discuss the issue, they further requested President and Finance Minister Ranil Wickremesinghe to intervene to extend their loan moratorium which ended on December 31 2022, to prevent their businesses
NTPC president G.Mahendra Perera told the media that they made an eight-point formula to the Governor of the Central Bank to address the issue in way that would protect the operations of these SMEs. According to him, many SMEs will be forced to close unless the authorities take immediate action.
He said that the Council pointed out to the Governor that loans taken out by SMEs have reached Rs.1, 000 billion, which the sector is struggling to pay back due to the prevailing challenges in the national economy. They owe these monies to banks and non-banking financial institutions.
“As the Governor had mentioned on many previous occasions that the Sri Lankan economy is set to contract further and recovery would take a long time, we told him that that at least 20,000 SMEs would be forced to discontinue operations in early 2023 if no action is taken by the relevant authorities to delay the repayment of interest and capital on the loans taken out by us.”
“In order to help the majority of our members to remain viable in their business operations, we proposed that the Government take immediate steps to implement eight measures. Namely; they are: providing an extension of taking Parate action until end of 31.12.23, stalling legal action already taken against borrowers until end of 2023, extending the capital repayment on borrowings until end of 2023, loan interest rates that apply on concessional rates to continue until end of 2023 and review its position by end of November 2023 (suggesting 15% p.a or lower), part or full waive off Interest upon settlement of all facilities and extending all concessions given under Circular No 2 of 2022 dated 7th July 2022 until end of 2023.
Another proposal they made was that in case of re-scheduling of facilities, interest in areas should not be added to capital, and soft loans should be grated at nominal interest rate.They also moved that financial institutions should not demand additional security to cover interest in areas, on borrowings.
“We kindly request immediate attention by the monetary authorities and the Government to above proposals, which in our opinion would give much-needed lifeline to SMEs which account for over 52% of Sri Lanka’s GDP and more than 45% of our labour force. The Council said details of the bank borrowings by SME entrepreneurs were furnished to the Governor that deserved careful perusal given the vulnerability of the said SMEs.
When asked whether they got a favourable reply from the governor on their proposals, they said,” “We are not happy with the response we got from the Governor in this regard. We felt that he was taking the side of the banking community and not looking at this issue from an SME perspective. That’s why we are appealing to the Finance Minister also for his mediation.”
‘We believe that banks have the capacity and resilience to survive even after extending this moratorium for a further period of one year because banks have declared profits so far. It is the SMEs that are vulnerable, not banks and NBFIs. If we are given reasonable time space and requested facilities, we can repay our loans and make our usual active contribution to the economy. That’s the way to move forward. When there aren’t any SMEs operating, both the country and the banks will suffer.”
Business
Cabinet approves submission of the Annual Economic Analysis of the Central Bank of Sri Lanka for the year 2024 to the Parliament
The Cabinet of Ministers has approved the proposal forwarded by the President in his office as the Minister of Finance, Planning and Economic Development to submit the Report on the Annual Economic Analysis of the Central Bank of Sri Lanka for the year 2024 to the Parliament.
As per section 80 (3) of the Central Bank of Sri Lanka Act No. 16 of 2023, the Minister in – charge of the subject of Finance shall submit a report on the economic situation which prevailed within the particular financial year, within four months after completion of each financial year. Accordingly, the report in relation to the financial review of the Central Bank of Sri Lanka for the year 2024 has been submitted to the President. The report has envisaged macro economic trends of Sri Lanka, situation of the financial system, as well as the major developments and a review of the policies of Central Bank of Sri Lanka.
[DGI]
Gigalingua Lanka, a premier German language institute, officially launched in Colombo with a ribbon-cutting ceremony attended by distinguished guests, including Dr. Felix Neumann, German ambassador to Sri Lanka. This marks a significant milestone for Sri Lankan professionals, especially nurses, looking to expand their careers in Germany’s thriving healthcare sector.
In collaboration with its strategic partner Global Care Solutions (Pvt) Ltd – a renowned company in the foreign recruitment industry – Gigalingua Lanka offers a unique pathway for Sri Lankan nurses and apprentices to master the German language and pursue rewarding career opportunities in Germany.
Dr. Felix Neumann, the Chief Guest at the event, expressed his support for the initiative, emphasizing the importance of language education as a bridge to global career prospects. In his speech, Dr. Neumann noted, “German language is not only a means of communication, it is a gateway to global career opportunities.” He commended Gigalingua Lanka for providing valuable opportunities for Sri Lankans and addressing the critical demand for skilled workers, especially in the nursing sector in Germany.
Gigalingua Lanka is the first private institute in Sri Lanka to offer comprehensive German language training up to the B2 level, and conduct TELC exam. The institution also provides language training for apprentices, allowing them to undertake the Apprenticeship Program and contribute to the growing labor market in Germany. The collaboration between Gigalingua Lanka and Global Care Solutions is designed to meet Germany’s growing need for skilled workers, particularly in the healthcare sector.
The event was attended by a number of prominent figures, including Dr. Felix Neumann , Arthur Senanayake (chairman of IWS Holdings), Eran Wickramaratne – former MP, Chandra Schaffter – ( Founder of Janashakthi Insurance ), Dhammika Attygalle (Director Upali Group of Companies and President Automobile Association of Ceylon) Former Wing Commander Buwaneka Abeysuriya (Ex- chairman Janatha Estates Development Board).
Chairman of Global Care Solutions, Thomas Michael Kriwat, who is also chairman of the Mercmarine Group of Companies in Germany, highlighted the significance of the new training center. He said, “We are bringing world-class German occupational language training to Colombo, offering a structured, career-focused pathway for Sri Lankan professionals. By introducing TELC (The European Language Certificates) as an officially certified German language test authority, we are increasing accessibility for students seeking internationally recognized qualifications.”
At the thanksgiving speech, Dr. Rajan Sara, Managing Director of Global Care Solutions and Director of Gigalingua Lanka, outlined the critical need for foreign nurses in Germany. “Germany is facing a significant shortage of nurses, estimated to need an additional 150,000 by 2025. This is exacerbated by an aging population and increasing healthcare demands. Over 47,000 vacancies in the healthcare sector remain unfilled, making it an ideal time for Sri Lankan nurses to seize this opportunity,” Dr. Sara explained. (Gigalingua Lanka)
In keeping with its vision to consistently evolve and address accelerated business growth needs, Brown & Company PLC recently unveiled its new state-of-the-art manufacturing and warehouse facility in Katunayake. Strategically located within minutes of the Bandaranaike International Airport and the nation’s rapidly evolving highway network, the space is positioned to significantly enhance Browns’ logistical capabilities. The hub will enable seamless access to key markets across the island, further solidifying the Company’s principal role in a cross-section of industries.
The inaugural event of the Browns Group Industrial Park was attended by Ishara Nanayakkara, Chairman, Brown & Company PLC and Deputy Chairman, LOLC Holdings PLC and Kapila Jayawardene, Group Managing Director/CEO, LOLC Holdings PLC along with key officials from the Browns and LOLC Group.
Maintaining public trust is a fundamental responsibility of the Police Department – President
Submission of gazette notifications for the concurrence of the Parliament.
Cabinet approval to prepare new Act for securing the rights of plant species
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