February 28, Colombo (LNW): Justice, Prisons Affairs, and Constitutional Reforms Minister Dr. Wijeyadasa Rajapakshe, PC, announced yesterday that proactive steps are being taken to alleviate challenges associated with Parate execution, aiming to prevent crises for businesses and financial institutions. Plans are underway to propose amendments to Parliament in this regard, signaling a commitment to address crucial legal matters for the country’s governance and justice system.
During a press briefing at the Presidential Media Centre themed ‘Collective Path to a Stable Country,’ Minister Dr. Rajapakshe also unveiled plans for a distinct loan scheme designed specifically for Small and Medium Enterprises (SMEs). The initiative aims to boost the economic prospects of smaller businesses, contributing to overall economic resilience and growth.
Addressing the media, Dr. Rajapakshe emphasized the government’s dedication to advancing legal reforms and supporting SMEs as part of its commitment to national progress and prosperity. He stated, “A nation’s fiscal policy is integral to its economic strength,” highlighting the government’s focus on ensuring stability and balance in the financial sector.
Dr. Rajapakshe discussed concerns about the Central Bank’s focus on safeguarding financial stability and raised questions about whether sufficient attention has been given to the country’s overall balance sheet, especially amidst declines in the agricultural and industrial sectors. He stressed the need for stringent financial controls to ensure optimal resource utilization and sustainable economic development.
Highlighting the challenge of loans totaling approximately Rs. 602 billion, he noted that a significant portion is expected to be written off as bad debt. Dr. Rajapakshe suggested that redirecting these funds toward agriculture and industry could have fueled significant growth. In response to these challenges, the government is working on a low-interest loan program for SMEs, collaborating with institutions like the World Bank and the Asian Development Bank.
The Minister also emphasized responsible lending and announced discussions with the Cabinet to establish a monitoring system for credit facilities. Further refinements to these strategies are expected through deliberations with the Finance Ministry.
