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NBFIs shut out of Saubhagya scheme: small, micro businesses suffer

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By Senath Nanayakkare

Lower-end businesses and micro businesses are at a clear disadvantage because only the licenced banks have been authorised by existing laws to provide the Saubagya Covid – 19 Refinance Facility, which is much in demand in the difficult economic situation, Krishan Thilakaratne, Director/CEO, Commercial Leasing and Finance PLC told The Island yesterday.

“As a result, small-time business ope13rators have not been able to benefit from these funds,” he said.

“The Monetary Law Act does not include Non-Banking Financial Institutions (NBFIs) as a Participating Credit Institution (PCI). This restricts NBFIs from participating in schemes originated by the CBSL. The recent “Saubaghya” loan scheme is one such scheme in which only the Licenced Commercial Banks participated. This has deprived some SMEs, lower-end SMEs and Micro market clientele, of vital low cost finance. More granular distribution of “Saubaghya” funds through NBFIs to Micro and SME sectors would have created more economic impact and caused a meteoric rise in the country’s GDP. We hope the necessary laws would be amended to correct these fundamental issues and NBFIs are used as financial conduit in government’s developmental programmes in future,” he said.

The Central Bank under the instructions of the government introduced this refinance facility for businesses adversely affected by the COVID-19 outbreak, under the Saubagya (Prosperity) Loan Scheme

Given the high demand for the new facility, the allocated amount of Rs. 50 billion has been increased to Rs. 150 billion and the deadline to submit application has been extended up to August 31.

The regulator approved 3,985 new loan applications amounting to Rs.11,829 million, submitted by licensed banks under this facility during the period 13-23 July 2020. However, NBFIs which play a crucial role in the economy offering their services in urban as well as rural areas by granting micro loans allowing for growth of small entrepreneurs have been left out of this important loan scheme.

 



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Geneva takes up Sallay’s case and govt. ignores opportunity to answer accusations

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Suresh Sallay

The government has chosen not to respond to questions raised by the United Nations Human Rights Council (UNHRC) regarding the detention of retired Maj. Gen. Suresh Sallay in connection with the ongoing investigations into the 2019 Easter Sunday attacks.

The Criminal Investigation Department (CID) arrested the ex-official in late February this year. The Special Rapporteur on the promotion and protection of human rights and fundamental freedoms while countering terrorism, the Working Group on Arbitrary Detention, the Special Rapporteur on the right of everyone to the enjoyment of the highest attainable standard of physical and mental health and the Special Rapporteur on the independence of judges and lawyers have jointly raised the issue on 20 July, 2026.

Drawing attention of President Anura Kumara Dissanayake to what they called alleged arbitrary detention of Sallay, former Director General of the State Intelligence Service (SIS) and former Director of Military Intelligence (DMI), under the Prevention of Terrorism Act (PTA), as well as allegations of torture and other cruel, inhuman or degrading treatment while in custody, resulting in the grave deterioration of his health, and imminent risks of retaliation through further torture and ill-treatment resulting in irreparable harm, should he be released from hospital and returned to custody, the UN sought the government explanation with a 60-day period.

The UN has stated: “This communication, and any response received from your Excellency’s Government, will be made public via the communications reporting website at the 60 days mark. Should your Excellency’s Government respond within 60 days, both the communication and the response, may be published before the 60 days mark. The communications and responses

will also be made available in the subsequent periodic report to be presented to the Human Rights Council.”

In the absence of the government’s response, the UN posted the letter, dated 20 July, 2026, addressed to President Dissanayake. The full letter can be accessed https://spcommreports.ohchr.org/TMResultsBase/DownLoadPublicCommunicationFile?gId=31125

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Section of wartime KKS High Security Zone vacated to facilitate economic development in the area

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The Army, last week, vacated an area, within the wartime high security zone in the Jaffna peninsula. The Defence Ministry said that an extent of 187.56 acres of land, belonging to the Cement Corporation in Kankesanthurai, Jaffna, has been released by the military. The released land, located in Grama Niladhari Division J/233, Kankesanthurai West, within the Valikamam North (Tellippalai) Divisional Secretariat Division, had been utilised by the Sri Lanka Army since the middle of 1997.

The release of the 187.56-acre extent forms part of the initiative to make State land available for the proposed investment zone in Kankesanthurai, thereby facilitating future investment and economic development in the area.

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Lawyer lodges complaint against Govt. Printer, Media Ministry Secy.

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A complaint has been lodged with the Colombo Fraud Investigation Bureau against the Government Printer and the Secretary to the Ministry of Media regarding the online release of falsified documents bearing a forged Speaker’s certificate.

Attorney-at-Law Aruna Laksiri has lodged a complaint with the Colombo Fraud Investigation Bureau requesting legal action against the Government Printer of the Department of Government Printing (No. 118, Dr. Danister de Silva Mawatha, Colombo 08), Prasanna Jayaratne, and the Secretary to the Ministry of Mass Media (Asidisi Medura, 163, Kirulapone Mawatha, Polhengoda, Colombo 05), Dr. Anil Jasinghe.

The complaint alleges the commission of offences by forging and uploading falsified documents online using a forged Speaker’s certification, failure to perform statutory duties, and misappropriation of public property.

The complaint states that a copy of the English translation of the 22nd Amendment to the Constitution was downloaded and printed from the official website of the Government Printing Department (www.documents.gov.lk), which operates under the Ministry of Mass Media. On its outer cover and on page 1, the text “certified on 25th of September, 2026” is inscribed inside brackets.

The complaint pointed out that the Speaker has certified an English translation. Under Articles 23, 79, 83, and 80 of the Constitution, Parliament enacts laws and the Speaker certifies bills strictly in the Sinhala and Tamil languages; under the Constitution, therefore the Speaker cannot apply such certification to an English translation.

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