CB Governor offers ray of hope for small business people going through a tough phase

Covid-19 pandemic’s repeated assaults

by Sanath Nanayakkare

The Road Map to be unveiled by the Central Bank of Sri Lanka on October 1, 2021 would contain a mechanism to resurrect micro, medium and small industries (MSMEs) hit hard by the Covid-19 pandemic, Central Bank Governor Ajith Nivard Cabraal said at the ‘Salakuna’ chat programme telecast by Hiru TV recently.

“The Central Bank would have the small guys in mind who are in great difficulty as they have been going through three moratoriums in view of the Covid-19 pandemic’s repeated assaults on them, especially as the latest moratorium given to them would expire on December 31,” he stressed.

He made this comment when Hiru TV presenter Chamuditha Samarawickrame asked if the Central Bank would forget about the struggling small business people over the blue chip companies in the Colombo Stock Exchange (CSE), when launching its ambitious Road map.

Responding to the question, the Governor said, “No, we won’t. You will see when we unveil the Road Map that we have taken their troubles into account. Small entrepreneurs have always taken a risk. They are not as secure as monthly salary earners. Micro, small and medium entrepreneurs are the backbone of the economy and we will come up with a programme to keep them afloat and safeguard them,”, he said.

According to him, small tourism businesses, the passenger transport industry (bus service) and other struggling small entrepreneurs that are in trouble as Covid- 19 hit them, would be considered in their best interests as the country is slowly but steadily coming out of the Covid-19 crisis.

He also said that six finance companies whose licences have been cancelled by the Central Bank should also be brought back into business and that a mechanism would be developed for it.

“I know that some individuals are on the CRIB for not being able to pay their small and medium sized loans on time. We expect to issue banks with fresh instruction to be more lenient towards those have taken loans below Rs. 500,000 and are unable to pay as their livelihoods have come to a halt.”

When the Hiru presenters pointed out that banks wouldn’t adhere to such instructions issued by the Central Bank, Cabraal said,” Yes, I know that this has happened in many instances. So we intend to talk to the banks to get it done without inflicting any suffering on the parries that are in dire need of help at this crucial juncture.”