Steps to be taken to write off micro finance loans and a lot of loans including loans on farmers

State Minister Hon. Shehan Semasinghe says assuming duties,

State Minister for Development banks and loan schemes Hon. Shehan Semasinghe says that immediate relief will be granted to the small and medium scale entrepreneurs to free from situation that they have faced in the country at present. The initial discussions were held under the patronage of the Prime Minister; with the state and private banks to find solutions for these problems which have been proceeded far beyond the loss of their property. The Minister pointed out that the concession will be given within the next week when relevant reports received from the respective banks. He was stating it at the Ministry of Finance while assuming duties this morning (02).

State Minister Hon. Shehan Semasinghe welcomed by the Secretary to the Ministry of Finance, Economic and Policy Development, Mr. S. R. Attygalle . After performing all religious observances, the Minister assumed his duties at the auspicious time with the chanting of Pirith. Chairman of the Sri Lanka People's Alliance; former Minister Prof. G.L .Peiris, state Ministers Kanaka Herath and Kanchana Wijesekara were also present for this event.

State Minister Shehan Semasinghe addressing the media later on:

“We have seen that there is no proper procedure of the previous government; it was the main reason for the failure of the government. But we have come to power by presenting a manifesto obviously to the community what we are doing. We are following the manifesto. The President, the Prime Minister and all of us are bound to carry out all the pledges which were mentioned in this manifesto within a period of five years. We have received a special mandate in the history regarding this matter and also an exceptional leadership has too been received.

We had a special discussion with the heads of the Central Bank, Heads of State and Private Banks under the patronage of the Prime Minister. The purpose was to be analyzed the economic condition of these banks in order to create future investment opportunities. Accordingly, they will issue a report in the next week.

We have asked for a report from the banks what they can do to make free on pressure from small and medium scale entrepreneurs to large scale entrepreneurs from today on wards. Some businessmen have been blacklisted by the Credit Information Bureau. Businessmen are on risk of losing their property. As soon as such reports are received within a week, we will grant concessions for these businessmen.

Taxes have been doubled during the period from 2014 to 2019. The tax money which was obtained, was not being used for benefit of the community. It was lost because of the corruption. As the first step, we have reduced the tax burden. We have taken steps to reduce government expenditure as a criterion of the revenue which lost through these reductions.

We are aware of clients who have been suffered from financial collapse as well as the corruptions of some financial institutions. We expect to solve the issue in a manner that will not be harmful to the economy of our country as well as our customers after having discussed with them. We will also take an action to ensure that law enforcement background and it can be prosecuted against these financial institutions and their owners.

The economic growth rate which was 6.8% in 2014, has been decreased up to 1.6%. Investors have been discouraged. We must resuscitate this economy. Particularly, the first task is to make strength the national security. We need to be convinced that security to the public even it is not sufficient to make ensure the security. It is performed after the permanent solution received for the security issue then only the conducive environment is created for the investment. Thereafter we have to solve the economic problem. The priority of our government to be given for solving those two issues.

The President Hon. Gotabhaya Rajapaksa made a promise at the presidential campaign stage to cut off the micro-finance loans. It was included in the manifesto. As such, we are not only dealing with micro finance loans but also cut-off all kinds of loans including loans on farmers. We will take the necessary steps after receiving the bank reports that I cited earlier.

Secretary to the Ministry of Finance, Economic and Policy Development Mr. S.R.Attygalle, Deputy Secretaries and Director Generals were also gathered for this occasion.

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A prompt solution for the problems that the affecting small and medium scale entrepreneurs confronted

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