Finance Ministry Plan Offers Hope for Sri Lankan SMEs

COLOMBO (News 1st): The Ministry of Finance has announced that solutions have been presented for the primary issues faced by small and medium-sized enterprises (SMEs) that have defaulted on loan payments up to the third phase of loan restructuring.

Deputy Minister of Finance, Dr. Harshana Suriyaapperuma, stated that under the current banking laws, an individual who has defaulted on loans up to the third phase will continue to be treated as a defaulter even after restructuring. 

Consequently, such individuals will not be eligible to apply for new loans.

According to the new solution, individuals who have defaulted on loans will be able to apply for additional loans based on recommendations from the Institute of Chartered Accountants of Sri Lanka and the Ministry of Industries.

With the new solution, the Deputy Minister of Finance, Dr. Harshana Suriyaapperuma, declared that the allocation of Rs. 5 billion from this year's budget for SMEs will be distributed without any issues.

The Deputy Minister emphasized that SMEs that have defaulted on loans should be prepared to engage in discussions with the Institute of Chartered Accountants of Sri Lanka and the Ministry of Industries to obtain recommendations. 

Subsequently, a priority list will be prepared to ensure the allocated funds are distributed to SMEs within the next nine months in a manner that benefits the national economy.