SMEs hit by Covid, Easter Attack fall from frying pan to fire

Colombo, Jan. 13 (Daily Mirror) - Small and medium-scale enterprises affected by the Easter Sunday attacks have fallen from the frying pan into the fire due to the banking sector’s failure to implement recommendations made by the Ministry of Industry, according to the Joint District Entrepreneur Organisation.

Its President, Chamli Kumarasiri, told a news conference yesterday that the Industry Minister, following feasibility studies, had proposed several measures to revitalise affected businesses, but these recommendations had not been accepted by the banking sector.

He said the affected businessmen were seeking relief measures determined through a merit-based evaluation process rather than outright loan write-offs.

Kumarasiri criticised the Finance Ministry for what he described as a lackadaisical approach to the issue, adding that attempts to secure a meeting with President Anura Kumara Dissanayake had failed.

He urged the government to appoint an independent committee to make recommendations on bank loan approvals and to establish the development banks proposed in the Budget.

As a relief measure for businessmen affected by the implementation of the Parate law, he said such loans should be absorbed by the government’s asset management unit. He also called for a loan scheme without collateral requirements for the benefit of these entrepreneurs.