Eran calls on govt. to extend SMEs’ debt moratorium

By Saman Indrajith

SJB Parliamentarian Eran Wickremaratne has called on the government in parliament to extend debt moratoria offered to small and medium Enterprises (SMEs). Wickremaratne said on Wednesday that following the pandemic, the prolonged economic crisis had heaped further burden on SMEs; he warned the failure to provide relief could result in more job losses.

“This cannot be done by the banks alone, the Government should take a policy decision with the involvement of the Central Bank to ensure the implementation of the moratorium extended in the past,” he said.

Wickramaratne said that there was no need for the government to act according to the conditions of the International Monetary Fund always, and an immediate decision must be taken for the good of the country.

The small and medium sector contributes about 50 percent of the gross domestic product and two-thirds of the employment sector, and therefore the Government cannot afford to turn a blind eye on the challenges faced by the sector. He added SMEs currently lack capital and have limited access to finance and required skills amidst regulatory barriers that impede access and knowledge on foreign markets.

“The Government must adopt a firm policy for the betterment of SMEs which contributes to GDP immensely, as many have withdrawn from the production process due to increase in utility costs such as water and electricity charges, petroleum and transportation. This is not their fault, but the Government has failed to offer solutions and relief to them,” Wickramaratne said.