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Colombo Chamber of Commerce President Saranga Wijeyarathne[/caption]
The Colombo Chamber of Commerce has submitted a written appeal to President Gotabaya Rajapaksa for intervention to instruct banks to support the SME and MSME exporters with pre-shipment collateral free loans.
The request is for pre-shipment collateral free loans of up to 75% of the value of the export order with a maximum cap of Rs. 5 million based on actual export orders and firm contracts.
As per Government Directive, the Central Bank of Sri Lanka (CBSL) has already guaranteed up to 75% of the loans, and the Colombo Chamber said that banks should not have any qualms to act proactively in support of the President's National Export Drive.
Commenting on the letter, Colombo Chamber of Commerce President Saranga Wijeyarathne made the following statement:
"Many MSME and SME exporters are keen to process export possibilities but reluctant to negotiate export orders due lack of capital and they give up although the supply line, know-how, and technical understanding are with them. Globally, exporters are given support by their respective governments and even our neighbouring country India has sanctioned collateral-free loans running into big figures. These pre-shipment loans will give opening to a new breed of exporters and help explore markets and clients which our big exporters omit due lower margins and smaller quantities. Further, this may open new doors and vistas to value add our economy (sic)."
The Colombo Chamber lauded the efforts of the President to accelerate the economy and combat the issues faced particularly by the SME and MSME and his appeal to the banks to adopt an “out of the box” approach to boost the National Export Drive.
Colombo Chamber of Commerce President Saranga Wijeyarathne[/caption]
The Colombo Chamber of Commerce has submitted a written appeal to President Gotabaya Rajapaksa for intervention to instruct banks to support the SME and MSME exporters with pre-shipment collateral free loans.
The request is for pre-shipment collateral free loans of up to 75% of the value of the export order with a maximum cap of Rs. 5 million based on actual export orders and firm contracts.
As per Government Directive, the Central Bank of Sri Lanka (CBSL) has already guaranteed up to 75% of the loans, and the Colombo Chamber said that banks should not have any qualms to act proactively in support of the President's National Export Drive.
Commenting on the letter, Colombo Chamber of Commerce President Saranga Wijeyarathne made the following statement:
"Many MSME and SME exporters are keen to process export possibilities but reluctant to negotiate export orders due lack of capital and they give up although the supply line, know-how, and technical understanding are with them. Globally, exporters are given support by their respective governments and even our neighbouring country India has sanctioned collateral-free loans running into big figures. These pre-shipment loans will give opening to a new breed of exporters and help explore markets and clients which our big exporters omit due lower margins and smaller quantities. Further, this may open new doors and vistas to value add our economy (sic)."
The Colombo Chamber lauded the efforts of the President to accelerate the economy and combat the issues faced particularly by the SME and MSME and his appeal to the banks to adopt an “out of the box” approach to boost the National Export Drive.