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

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)