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Banks (Finance)

President Rajapaksa Calls on State Banks to Lead Revival of Economy and SMEs Affected by COVID-19

Strategic Insights

— 2 min read

President Gotabaya Rajapaksa urged the State banks to take the lead in reviving the economy and supporting small and medium enterprises (SMEs) heavily impacted by the COVID-19 pandemic. He emphasized that the banks' primary obligation is to implement the government's policies and take forward the strategy of maintaining a vibrant economy. The President pointed out the importance of reducing the interest rate to a single digit to assist in the country's development and encouraged the banking community to think outside the box to address the unprecedented global scenario.

Key Takeaways:

  • President Rajapaksa stressed that the State banks' primary obligation is to implement the government's policies and revitalize the economy.
  • He emphasized the need to reduce the interest rate to a single digit to assist in the country's development.
  • The President encouraged the banking community to think outside the box to address the unprecedented global scenario caused by COVID-19 and global shocks.
  • President Rajapaksa reiterated his determination to meet the expectations of every community in the country, citing his strong sentiments in meetings with the Bank of Ceylon and exporters.
  • He highlighted the critical role of State Banks in reviving the economy, emphasizing that they should provide financial assistance to SMEs and investors.
  • The President emphasized that he has never requested any bank to grant loans to his kith and kin, acquaintances, or supporters, focusing on helping SMEs and other COVID-19-hit enterprises.
  • He pointed out that conventional methods cannot be used to revive the economy in its current perilous state and that the banking sector should think out of the box to address the crisis.
  • President Rajapaksa reiterated that his emphasis on the role of banks is not for political gains but for the benefit of the country.

Statistics:

  • The two-digit interest rate for loans in Sri Lanka hinders the growth of the economy (Source: President Rajapaksa).
  • The interest rate should be brought down to a single digit to assist in the country's development.
  • The growth rate of the economy, which was 7-8% before 2015, had fallen below 2% by 2019 (Source: President Rajapaksa).
  • The global economy, which collapsed in the wake of the COVID-19 pandemic, has further worsened the economic situation in Sri Lanka.

Sources:

  • President Gotabaya Rajapaksa's statement at the Bank of Ceylon meeting (no date given).
  • President Rajapaksa's speech at the meeting with exporters (no date given).
  • "President tells exporters to immediately pay loans" by The Sunday Times, Sri Lanka (no date given).
  • "President Rajapaksa orders Police to stop vehicle seizures by leasing companies" by The Sunday Times, Sri Lanka (no date given).

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