Sri Lanka President orders 6-month debt moratorium, 4-pct working capital

[The Invisible]

ECONOMYNEXT – Sri Lanka’s President Gotabaya Rajapaksa ordered banks to suspend collecting loans for six months and provide working capital for businesses loans at 4 percent, as the country is battling a Coronavirus epidemic.

“Loan repayments to banks and financial institutions are a big burden for businesses,” President Rajapaksa said in a television address to the nation.

“I am ordering that debt should not be collected or six months and for working capital to be provided at 4 percent.”

Sri Lanka’s banks had already given a debt moratorium to tourism which was hit by a suicide bombings last year and a debt moratorium to those who requested in a proposal made by Prime Minister Mahinda Rajapaksa.

President Rajapaksa also ordered a price control on businesses. Dhall shall be sold at 65 rupees and a tin of sardine at 100 rupees he said, without specifying the size. (Colombo/Mar17/2020)

[කිත්සිරි ද සිල්වාTop contributor]

ජාතික ආපදාවත් චන්ද හිගමනට !

[The Invisible]

I thought the speech was entirely to focus on what the Gvt doing to control this virus and why the people of country should actively support government. But at the end I saw reduction in dhal, canned fish prices ne

[කිත්සිරි ද සිල්වාTop contributor]

The Real Message Yesterday !

" රටවැසියනි,
අපි ඉදිරියට දෙන පරිප්පු කෑමට සූදානම් වෙන්න ! "

I thought the speech was entirely to focus on what the Gvt doing to control this virus and why the people of country should actively support government. But at the end I saw reduction in dhal, canned fish prices ne

[The Invisible]

parippu samaga tin maalu

[malanp]

ECONOMYNEXT – Sri Lanka’s President Gotabaya Rajapaksa ordered banks to suspend collecting loans for six months and provide working capital for businesses loans at 4 percent, as the country is battling a Coronavirus epidemic.

“Loan repayments to banks and financial institutions are a big burden for businesses,” President Rajapaksa said in a television address to the nation.

“I am ordering that debt should not be collected or six months and for working capital to be provided at 4 percent.”

Sri Lanka’s banks had already given a debt moratorium to tourism which was hit by a suicide bombings last year and a debt moratorium to those who requested in a proposal made by Prime Minister Mahinda Rajapaksa.

President Rajapaksa also ordered a price control on businesses. Dhall shall be sold at 65 rupees and a tin of sardine at 100 rupees he said, without specifying the size. (Colombo/Mar17/2020)

Financial Times says Interest is suspended for 6 months while Economynext  says loan collection. ultimately only talk, nothing will happen. banks will operate as usual.

people will vote for them.

does president have powers to order banks or he needs to order through a gazzete or through Central Bank?

[slstockVeteran]

Financial Times says Interest is suspended for 6 months while Economynext  says loan collection. ultimately only talk, nothing will happen. banks will operate as usual.

people will vote for them.

does president have powers to order banks or he needs to order through a gazzete or through Central Bank?

1) President can only make a request.

2) He will need to move this through proper channels for it to be a law !

Most probably nothing will happen in this case as you say
( unless some banks voluntarily does it)


ps : Its different from the scene , when President asked  Royal Thomian
match to be not held ( but they held it anyway)  Vs him easily ordering it not to be held .