Govt to discuss with banks and leasing companies extending grace period

By Saman Indrajith

Trade Minister Bandula Gunawardane told Parliament yesterday that the government would discuss with the leasing companies and banks the need to extend the grace period for repayments in view of the pandemic.

He said that Sri Lanka as well as the entire world had been affected in an unprecedented manner by the COVID-19 pandemic. The government would grant more relief to people through the upcoming Budget.

He said that the government would not allow middlemen to control the prices of commodities unlike in the past.

 Responding to a question by Opposition Leader Sajith Premadasa, Minister Gunawardane said that he would agree with the latter that the country’s economy was in bad shape. The economy of the country had been below USD 20 billion each year since Independence until Mahinda Rajapaksa was elected President in 2005. After the terrorism was defeated, the economy had developed and reached USD 79.3 billion when the reins of government were handed over to the UNP in 2015. The economic growth rate was at seven percent at that time. 

Minister Gunawardane said that the economic growth rate dropped to 2.3 percent gradually during the last five years under the yahapalana regime.    

He said that as the imports were allowed without any restrictions during that period, the rupee had dropped drastically against the US dollar from Rs 131.00 to Rs 180.00. The incumbent government had been compelled to restrict imports to protect the local producers.

Gunawardane said a government could not protect producers, consumers and the middlemen at the same time. He said that the government could ensure the protection of the producers and let the consumers access the products at a reasonable rate. “If the cost of a coconut is Rs 30, the government cannot sell it at Rs 150 unlike during the UNP regime,” Minister Gunawardane said.  “The government cannot allow the middlemen to control the price of commodities at their whims and fancies earning exorbitant profits like during UNP government tenure by controlling the judiciary. It is at this point where the UNP went wrong and that was why none of the UNP candidates had got elected to Parliament.”

Minister Gunawardena said that a standard facemask was Rs 50 or 60. However, the same standard face mask by a local producer was sold at Rs 20 at the Cooperative shops and Sathosa. He added that in such a manner the government controlled prices to provide relief to the consumers.