Home / Front Page/ Tourism sector moratorium estimated at Rs. 101 b: CB Chief

Tourism sector moratorium estimated at Rs. 101 b: CB Chief


Comments / {{hitsCtrl.values.hits}} Views / Friday, 12 July 2019 00:00


 


 

  • Banks received 3,641 applications, 945 approved 
  • Governor says moratorium working well, but working capital provision still working out kinks 
  • NPLs unlikely to reduce from moratorium
  • NPL ratio 4.8% for banks, 7.9% for non-bank institutions   

Central Bank Governor Dr. Indrajit Coomaraswamy yesterday said the total value of the moratorium for the tourism sector was estimated at Rs. 101 billion. 

Responding to questions, Dr. Coomaraswamy told reporters banks had received 3,641 requests, of which 945 have been approved. The total of the applications was Rs. 101 billion with the remainder of the applications, approximately 2,696, still being processed.    

“We are beginning to see a build-up of momentum. Clearly it took the banks a bit of time to gear up for it. First they had to figure out where the decision would be made, then get the messages down to their branches, and all this took some time. But we are beginning to see approvals picking up momentum. The general consensus in the tourism industry is the moratorium is working OK. Where there is a challenge still is these working capital loans, particularly for small people. This is just beginning to be implemented, as it took time for the Government to allocate money and for the program to be designed, and it will be administered through the three State banks,” he said.    

However, NPLs are unlikely to be reduced by the moratorium, as those who are eligible for the moratorium were active payers of their loans. Those with NPL status when the moratorium came into effect were not covered, Dr. Coomaraswamy explained.

 The sector currently has a 4.8% NPL rate, which the Governor said was being closely monitored by the Central Bank. The NPL rate for the non-banking sector was 7.9%, which had increased from 5.8% in March. The Governor insisted this was not a serious concern for the financial system but required close monitoring.       

 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Ministry of Tourism: A nation rich in hospitality

Monday, 21 October 2019

This series is based on business leader Dhammika Perera’s recently revealed ‘Economic Growth Strategy and Action Plan to increase GDP Per Capita from $ 4,000 to $ 12,000’. The document outlines goals and action plans for 23 ministries and today


Fixing lending rates and waiving farmer loans: two policies that do not augur well for borrowers

Monday, 21 October 2019

Recently, there were two policy pronouncements relating to lending, one already implemented by the Central Bank and the other being proposed for implementation by the SLPP presidential hopeful, Gotabaya Rajapaksa, that if he is elected to presidency.


Creating a cyber-resilient society

Monday, 21 October 2019

While technology is opening a whole new world of opportunities, the threats posed from terrorists are no longer pure physical attacks but also expand to the digital world. The danger may not venture into weapons or create a battlefield with thousands


Find out where he is going – In pursuit of the consumer journey

Monday, 21 October 2019

I remember very clearly the excitement of buying our very first TV set. My dad and mum excitedly chatted about it. They spoke to all their friends who had TV sets at their homes. My dad virtually had an analysis of brands and what his friends said we


Columnists More