CB works late: Announces sweeping steps to boost economy

COLOMBO (News1st): The Central Bank on Tuesday said that it will implement new credit schemes to support the revival of the country's economy, following the President's criticism of CBSL officials' lackadaisical conduct towards reviving the growth of the country. "Growth of the Sri Lankan economy has fallen to dismal levels over the past few years," the CBSL said in a statement on Tuesday. It added that the impact of the COVID-19 pandemic may result in severe stress on economic and financial system stability in the country. The central bank noted that it will provide funding to licensed commercial banks in addition to the Rs 27.5 billion disbursed under the refinance scheme. Funding would be granted at the concessionary rate of one per cent on the condition that commercial banks will on-lend to domestic businesses at four per cent. "This scheme along with the existing refinance Scheme will provide Rs. 150 billion in total to the businesses affected by the COVID-19 pandemic," the statement read. Under the new credit scheme, construction sector enterprises will be allowed to borrow from banks using guarantees issued by the government equivalent to the amount due on contracts carried out in the past.