Sri Lanka tourism working capital loan expanded

ECONOMYNEXT- Sri Lanka’s Treasury will be expanding a subsidised working capital loan to be given to tourism businesses to help recover from the Easter Sunday terror attack, Central Bank Governor Indrajit Coomaraswamy said.

He said that the government will be providing working capital loans of up to 1.5 million rupees for tourism businesses. Earlier the Treasury had planned to only give a 500,000 rupee loan.

"There is pressure to increase this further," Coomaraswamy said.

He said that this loan is especially targeting businesses which have taken leases, as such debt, and do not fall under the new loan moratorium being given by banks.

Coomaraswamy said that the Treasury will guarantee 75 percent of the working capital loan and the central bank will administer the program.

"This is only beginning to be implemented," he said.

"It took a bit of time for the government to allocate money and for the program to be designed."

"In the coming weeks, the gap will be fixed," he said.

Coomarswamy said that with the working capital loan and the moratorium, the entire tourism industry will be provided with relief to conduct business until the situation returns to normal.