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Plea for debt moratorium to rescue drowning SMEs and saving millions of jobs

Published

3 years ago

2022/05/27

Around 4.5 million Sri Lankans employed in the small and medium enterprises (SMEs) might lose their jobs in the coming months unless the government stepped in and assisted businesses, Chairman of Sri Lanka United National Businesses Alliance (SLUNBA), Tania Abeysundara told the media in Colombo on Wednesday.

She warned that a lot of SMEs might collapse in the next month unless the government arranged a debt moratorium.

“4.5 million people work in SMEs. When we asked the Central Bank Governor, he said that he can’t assure a debt moratorium. He was worried about the banking sector. I would like to ask the governor, wouldn’t the banking sector collapse if the SME’s can’t pay their loans,” Abeysundara said.

She said that Prime Minister Ranil Wickremesinghe had approved money printing to pay the salaries of government employees.

“When the government has no money to pay their employees, they can always print the money. What about us? Are we also to print money? Unless we receive a debt moratorium we will have to close our businesses,” she said.

Meanwhile, Treasurer of the SLUNBA, Lakmal Perera said that “once people lose their jobs, it is likely that they would come on to the roads and that will lead to a chaotic situation.

“We asked the government about this and they have no answer. There is no way that we can pay our loans with this contraction of the economy. We need an answer soon, when these people are on the roads the 225 MPs won’t be able to stop them,” he warned.

Vice chairman of the Association and President of the Vehicle Importers Association, Indika Sampath Merenchige also insisted that the government should talk to the business owners and give them a moratorium. If that did not happen, SMEs would be compelled to stop repaying loans.

“We give the government two weeks. We have employees that have been working with us for 10-15 years. They are a big part of how we have succeeded and survived. So, we can’t send them home. We have to somehow pay them. So, we have to stop paying loans,” Merenchige said.

Deputy Chairman of the SLUNBA, Susantha Liyanarachchi, who is also the Chairman of the National Construction Association of Sri Lanka (NCASL) said that there was a danger of a large number of garment factories leaving the country and as they couldn’t expect the cabinet that had been appointed to navigate the country out of the economic crisis.

“If garment factories leave, what will happen to foreign currency earnings?” he asked.

Governor of the Central Bank, Dr. Nandalal Weerasinghe said that the minimum economic activity would be experienced in the country in the next six to eight months.

“That means the economy will contract. We estimate that the economic contraction this year will be greater than any other time in post-independence Sri Lankan history. No one can bring down inflation below 30-40 percent in the next six months. People who are poor and vulnerable will be severely affected. Unless the government provides some support, the poor will find it hard to live,” he said.

Dr. Weerasinghe said that poverty levels would increase and when an economy contracted there would be a lot of unemployment, especially in the SME sector. (RK)

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Heat index is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Monaragala, Hambantota, Jaffna, Mullaittivu, Kilinochchi, Vavuniya and Kurunegala districts

Published

46 mins ago

2025/04/27

Priyan

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. 26 April 2025, valid for 27 April 2025.

The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Monaragala, Hambantota, Jaffna, Mullaittivu, Kilinochchi, Vavuniya and Kurunegala districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

Latest News

Minister of Foreign Affairs pays his last respects to Pope Francis

Published

1 hour ago

2025/04/27

Priyan

Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath represented Sri Lanka at the funeral of Pope Francis on Saturday [26]

News

RW to visit CIABOC on Monday

Published

2 hours ago

2025/04/27

Thilina Walpola

Former President Ranil Wickremesinghe will appear before the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) tomorrow (28) over the statement he had made on MP Chamara Sampath Dassanayake, his lawyers have informed the Commission.

Accordingly, the former President will appear before the commission at 9.30am on Monday.

Wickremesinghe was initially summoned by the Commission to CIABOC on April 17 in relation to a statement he had made about the corruption case filed against NDF (gas cylinder) MP Dassanayake.

In response to the previous summons, Wickremesinghe had indicated that he is prepared to appear before the commission but requested a different date citing that his lawyers will not be available in Colombo during the New Year holiday period.

Accordingly, a new was provided and Wickremesinghe requested to appear before the commission at 09.30 a.m. on Thursday (April 25).On April 7, Wickremesinghe had said that MP Dassanayake withdrew the fixed deposits belonging to the Uva Provincial Council, over which he is now facing corruption charges, in accordance with a circular issued during Wickremesingher’s tenure as Prime Minister.

The former President questioned whether the MP’s arrest over the matter was in response to Dassanayake’s vocal criticism of the government in parliament.

The sitting MP is currently in remand custody for allegedly misappropriating a sum of Rs. 1 million of the Uva Provincial Council in 2016.

He was taken into custody on March 27, over three separate corruption-related cases.

The Colombo Magistrate’s Court previously granted bail in the cases filed against him but he remains in remand custody due to an order issued by the Badulla Magistrate’s Court.

According to the CIABOC, Dassanayake had solicited funds from three state banks, claiming they were intended to provide bags for preschool children in the province.

Two banks complied, granting him Rs. 1 million and Rs. 2.5 million, which were later transferred to his foundation account.

However, when a third bank refused to provide funds, Dassanayake reportedly retaliated by withdrawing the Uva Provincial Council’s fixed deposits from that institution.The CIABOC filed a case against the MP, citing the government incurred a financial loss of Rs. 17.3 million due to his actions.