Business
SMEs call govt. to come up with policy responses to prevent them from going bust
‘Our businesses are more at risk than profit-making banks and financial institutions’, they say
by Sanath Nanayakkare
The National Trade Protection Council (NTPC) which represents over 30,000 Small and Medium Scale Enterprises (SMEs) in the country, a provider of direct employment to over 4.5 million Sri Lankans, says that the normalisation of the economy is paramount for their members to improve their loan repayment capacity.Having met with Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Ceylon on Dec. 29 to discuss the issue, they further requested President and Finance Minister Ranil Wickremesinghe to intervene to extend their loan moratorium which ended on December 31 2022, to prevent their businesses
NTPC president G.Mahendra Perera told the media that they made an eight-point formula to the Governor of the Central Bank to address the issue in way that would protect the operations of these SMEs. According to him, many SMEs will be forced to close unless the authorities take immediate action.
He said that the Council pointed out to the Governor that loans taken out by SMEs have reached Rs.1, 000 billion, which the sector is struggling to pay back due to the prevailing challenges in the national economy. They owe these monies to banks and non-banking financial institutions.
“As the Governor had mentioned on many previous occasions that the Sri Lankan economy is set to contract further and recovery would take a long time, we told him that that at least 20,000 SMEs would be forced to discontinue operations in early 2023 if no action is taken by the relevant authorities to delay the repayment of interest and capital on the loans taken out by us.”
“In order to help the majority of our members to remain viable in their business operations, we proposed that the Government take immediate steps to implement eight measures. Namely; they are: providing an extension of taking Parate action until end of 31.12.23, stalling legal action already taken against borrowers until end of 2023, extending the capital repayment on borrowings until end of 2023, loan interest rates that apply on concessional rates to continue until end of 2023 and review its position by end of November 2023 (suggesting 15% p.a or lower), part or full waive off Interest upon settlement of all facilities and extending all concessions given under Circular No 2 of 2022 dated 7th July 2022 until end of 2023.
Another proposal they made was that in case of re-scheduling of facilities, interest in areas should not be added to capital, and soft loans should be grated at nominal interest rate.They also moved that financial institutions should not demand additional security to cover interest in areas, on borrowings.
“We kindly request immediate attention by the monetary authorities and the Government to above proposals, which in our opinion would give much-needed lifeline to SMEs which account for over 52% of Sri Lanka’s GDP and more than 45% of our labour force. The Council said details of the bank borrowings by SME entrepreneurs were furnished to the Governor that deserved careful perusal given the vulnerability of the said SMEs.
When asked whether they got a favourable reply from the governor on their proposals, they said,” “We are not happy with the response we got from the Governor in this regard. We felt that he was taking the side of the banking community and not looking at this issue from an SME perspective. That’s why we are appealing to the Finance Minister also for his mediation.”
‘We believe that banks have the capacity and resilience to survive even after extending this moratorium for a further period of one year because banks have declared profits so far. It is the SMEs that are vulnerable, not banks and NBFIs. If we are given reasonable time space and requested facilities, we can repay our loans and make our usual active contribution to the economy. That’s the way to move forward. When there aren’t any SMEs operating, both the country and the banks will suffer.”
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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