Banks directed to suspend recovery of small and medium scale enterprise loans

Colombo (News 1st): All banks have been directed to suspend recovery of small and medium scale enterprise loans up to Rs. 300 million. The order was given by President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa. Meanwhile, State Minister for Development banks and loans says that this decision will not have any impact on the banking system. State Minister Shehan Semasinghe noted that properties of small and medium scale businessmen have been auctioned when they have borrowed up to Rs. 300 million. He added that the Finance Ministry has issued a notification to stop the auction of properties.

"As a second step in empowering these businessmen, we have halted the auction of real estate. Another relief package is to be provided to them. We believe that talented entrepreneurs and businessmen can restore the economy of our country. But we are not going to make decisions based on one party or an individual. We are going to provide fair solutions for the banking system as well as to the businessmen and consumers."