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Central Bank implements schemes to assist COVID-hit borrowers
The Central Bank has implemented several schemes to assist COVID-19 affected borrowers through Financial Institutions (FIs) supervised by it.
The schemes included extended repayment periods, concessionary rates of interest, working capital loans, debt moratoriums and restructuring/rescheduling of credit facilities for affected borrowers.
These concessions greatly assisted the small and medium enterprises of many affected sectors: tourism, apparel, plantation, information technology, logistic service providers, three-wheeler owners, operators of school vans, lorries, small goods transport vehicles and buses, and private sector employees.
In line with the concessionary schemes implemented by the CB, FIs have approved over 2.9 million requests for concessions amounting to a total of Rs. 4,083.8 billion prioritising the micro, small and medium enterprises (Table1).
These concessions, which were extended until 31 December 2021 by licensed banks and until 31 March 2022 by nonbank financial institutions, have helped to support the above groups who faced financial difficulties due to loss of jobs, reduction of incomes, contraction of business operations, closure of businesses, etc.
Considering that the tourism sector has been affected since 2019, special concessionary schemes for affected borrowers in the tourism sector continued to be granted from time to time and extended until 30.06.2022 by licensed banks and until 31 March 2022 by non-bank financial institutions. Accordingly, FIs have so far approved 24,831 requests for such concessions.
Specific concessions, such as moratoriums for lease facilities, granted to COVID-19 affected businesses and individuals in passenger transportation sector, were initially up to 30 September 2021, and extended further until 31 December 2021 by licensed banks and 31 March 2022 by non-bank financial institutions. FIs have approved 117,085 requests for such concessions.
In addition to debt moratoria, affected borrowers of the NBFI sector have been provided with the option to either restructure existing credit facilities for a longer term (subject to furnishing an agreeable revival plan) or to settle existing credit facilities early, where such requests are to be facilitated by waiving future interest, fees and applicable charges. These options have been made available for borrowers of nonbank FIs up to 31 March 2022.
CBSL has also requested FIs to grant further concessions, including the waiver of accrued penal interest, restructuring of existing credit facilities, provision of interest rebates, waiver of early settlement fees and other charges, suspension of legal action on loan recoveries, extension of the validity period of cheques valued below Rs. 500,000, discontinuation of certain charges usually made by FIs (for cheque returns, stop payment, etc.) and suspension of late payment fees applicable on credit cards during the concessionary period. FIs have also been requested to refrain from declining loan applications from eligible borrowers, solely based on unfavourable Credit Information Bureau (CRIB) records.
CBSL has further facilitated the revival of COVID-19 affected businesses through the introduction of the Saubagya COVID-19 Renaissance Loan Scheme Facility (SCRF) in 3 phases to provide working capital loans at an interest rate of 4% per annum, with a repayment period of 24-months, including a grace period of 6 months. Through this scheme, CBSL processed 62,574 applications leading to the release of Rs. 179,280 million under the SCRF, of which, Licensed Banks have disbursed Rs. 165,513 million among 53,152 affected businesses island-wide. Considering the subsequent waves of COVID-19 pandemic, grace periods and loan repayment periods applicable to SCRF loans have also been extended several times.
Accordingly, a debt moratorium has been granted up to 31 December 2021 while the repayment period has been extended by 12 months to 36 months. In addition, beneficiaries of the other loan schemes implemented by CBSL, such as Saubagya and Swashakthi Loan Schemes, have been provided with further relief at this crucial juncture, by the reduction of the interest rates and the introduction of the debt moratorium.
As announced recently by the CBSL in its six-month Road Map for ensuring macro-economic and financial system stability, a liquidity support grant of Rs. 15 billion is to be provided to FIs supervised by CBSL to compensate a part of the cost of the interest charged by them from affected borrowers during the moratorium, with a view to providing further relief to borrowers.
In the meantime, the CBSL has established the Financial Consumer Relations Department (FCRD) in August 2020 to handle complaints by financial consumers and borrowers who are able to submit complaints to FCRD using the forms available in the CBSL website.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
