Small and Medium Enterprises (SMEs), the backbone of Sri Lanka’s economy, are raising urgent concerns about inadequate support amid ongoing crises and policy failures.

Despite their significant contributions—52% of GDP and over 5 million jobs—the SME sector is struggling with high-interest rates, unaddressed debt restructuring needs, and the consequences of past government mismanagement.

The SME Alliance expressed dissatisfaction with the Central Bank’s circulars issued in September 2024 and January 2025, which offered no tangible relief. Although these circulars exempt SMEs from the CRIB when applying for loans, banks have disregarded this directive, leaving debts unrestructured.

The Alliance highlighted the impact of the country’s bankruptcy declaration in 2022, which triggered a 30-35% interest rate hike on pre-existing SME loans.

This has led to severe financial strain, with SMEs unable to manage inflated rates. The Alliance believes that restructuring debt without waiving accumulated interest since 2019 is ineffective.

They propose a capped interest rate of 10% for restructured debts, noting that the proposed 15-16% rate is excessively high compared to the 7% interest paid by banks on deposits.

In 2023 alone, over 1,400 properties were seized by banks due to loan defaults. This has resulted in widespread job losses, social issues, and emotional distress.

Many entrepreneurs have pledged their only properties for loans, leaving them unable to secure additional funds to grow their businesses. The Alliance urged the government to address this issue urgently.

Another challenge SMEs face is the mounting fines for unpaid Employee Provident Fund (EPF), Employee Trust Fund (ETF), income tax, and VAT arrears over the past five years, with penalties often doubling the original dues.

 The Alliance has requested a system that allows SMEs to pay only the outstanding amounts, excluding punitive fines.

The SME Alliance further blamed financial crimes committed by the previous government for the sector’s current plight. They demanded legal action against the responsible officials and compensation for the affected SMEs.

In response, the government has announced a relief package to support struggling SMEs while maintaining banking sector stability.

 Developed in collaboration with the Central Bank, banks, and SME representatives, the package targets SMEs with non-performing loans (NPLs) classified after April 1, 2019.

Eligible SMEs must initiate discussions with designated banking units by March 31, 2025, and provide necessary documentation.

 The proposed relief measures are categorized based on the aggregate capital outstanding as of December 15, 2024. While these measures aim to offer long-term solutions, SMEs stress the need for immediate and meaningful reforms to prevent further economic and social fallout.

The Police Special Task Force (STF) has uncovered a large-scale illegal distillery in the Kiribathgoda area, seizing nearly 4,000 bottles of illicit liquor.

Several suspects were arrested during the operation. Authorities report that the distillery has been operating unlawfully, causing a significant revenue loss to the government.

The STF continues its efforts to crack down on illegal activities, with a focus on combating tax evasion and protecting public health by targeting unregulated alcohol production and distribution. Investigations into the operation are ongoing, and the suspects are expected to face legal proceedings.

In a historic achievement, the All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) soared past the 17,000-point milestone for the first time today during trading.

The ASPI closed at 17,025.99 points, reflecting a remarkable performance that underscores growing investor confidence in the market. By the end of the trading session, a transaction turnover of Rs. 9.7 billion was reported, highlighting the robust activity in the exchange.

This milestone marks a significant moment in Sri Lanka’s financial market history and indicates strong momentum as the CSE continues to attract both domestic and international investors.

Prime Minister Dr. Harini Amarasuriya reaffirmed the importance of safeguarding the rights of Sri Lanka’s indigenous community, emphasizing that they should enjoy the same rights as all other citizens.

The Prime Minister expressed these views during a discussion organized by the Environment Ministry at the Parliament Complex on Wednesday (22), focusing on the progress of the Parliamentary Bill aimed at ensuring the rights of the indigenous community and addressing existing legal issues regarding their fundamental rights.

Dr. Amarasuriya called for swift action, instructing officials to resolve the legal and technical challenges faced by the indigenous community within the next three months. She emphasized the need to minimize the difficulties experienced by the community and ensure their rights are protected.

Commitment from Ministries
Environment Minister Dhammika Patabendi assured that the Environment Ministry would take the necessary steps to enact laws and regulations to safeguard the rights of the indigenous community. Cultural Affairs Minister Sunil Senevi emphasized that the Vedda community is a vital part of Sri Lanka’s historical and cultural heritage, underscoring the need for their protection and empowerment.

Voices from the Vedda Community
Vedda Community Leader Uruwarige Vanniyalaththo highlighted the historical significance of the community and drew attention to their current challenges. He pointed out that despite previous efforts by successive governments, their daily issues remain inadequately addressed. He also referenced the Indigenous Rights Act, which aligns with the United Nations Charter, and stressed the urgent need for effective measures to address these concerns.

Participants and Future Steps
The discussion involved a range of stakeholders, including Deputy Environment Minister Anton Jayakody, MP Sugath Balagalla, Wildlife Director General Suriyabandara, officials from the Environment Ministry, the Centre for Policy Alternatives, and members of the indigenous community.

The Environment Ministry and the Wildlife Department provided updates on the current status and outlined future actions to address the issues faced by the Vedda community.

This initiative marks a significant step towards securing the rights and preserving the cultural heritage of Sri Lanka’s indigenous population.

The National Dengue Control Unit (NDCU) has reported 3,649 dengue cases across Sri Lanka in the first three weeks of this year, with two dengue-related deaths confirmed during this period.

The Western Province has been the most affected, accounting for 1,576 infections:

• Colombo District: 491 cases
• Gampaha District: 558 cases
• Kalutara District: 95 cases

The NDCU has identified 22 Medical Officer of Health (MOH) divisions nationwide as high-risk areas for dengue.

Health authorities urge the public to remain vigilant and take proactive measures to eliminate mosquito breeding sites as part of ongoing efforts to curb the spread of dengue.

President’s Secretary Dr. N.S. Kumanayake has provided Ministry Secretaries with detailed instructions regarding the appointment process for consultants and staff in each Ministry.

The guidelines specify that a Minister can have a personal staff of up to 15 members, while a Deputy Minister can appoint a maximum of 12 staff members. For a Minister, the allocations include:

• Two personal assistants
• Two coordinating secretaries
• One press secretary
• One public relations officer
• Five management assistants
• Two office assistants
• Two drivers

For a Deputy Minister, the allocations are:

• Two coordinating secretaries
• Three management assistants
• One each for other roles

Additionally, the directive prohibits appointing family members or close relatives to these positions.

The guidelines also limit the number of official vehicles to two for both Ministers and Deputy Ministers. Phone expense limits are capped at Rs. 20,000 for office and residential use and Rs. 10,000 for mobile phones. The document clarifies that telephones and related equipment for support staff cannot be provided at the government’s expense.

These measures aim to ensure transparency, cost-efficiency, and accountability in ministerial appointments and expenditures.

Prime Minister and Education Minister Dr. Harini Amarasuriya announced in Parliament yesterday plans to provide 700,000 students with gift vouchers to purchase school shoes.

The initiative also includes plans to directly supply shoes to students attending schools with fewer than 250 students, Dr. Amarasuriya revealed in response to a question posed by Badulla District MP Ravindra Bandara.

The Cabinet of Ministers recently approved the Prime Minister’s proposal to issue gift vouchers worth Rs. 3,000 to selected schoolchildren, including student monks, lay students of pirivenas, and seela mathas, to purchase shoes.

This measure reflects the government’s ongoing commitment to supporting students and addressing educational needs across the country.