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


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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


Today's Columnists

Tea with NM

Saturday, 20 July 2019

One of my most treasured memories is that of NM, better known as Dr. N.M. Perera. It was when I was a student in the UK that I first met him. NM was already a formidable left leader in Sri Lanka, an accomplished parliamentarian, a larger-than-life fi

Biosphere will one day be replaced by technosphere

Saturday, 20 July 2019

I am now nearly 90 and in my lifetime I have seen and heard the world changing so fast that homo sapiens (Latin: “wise man”), the species to which all modern human beings belong, are changing into a technology-dependent sub species, . Homo sapien

Expand employer-backed childcare to close the gender gap in Sri Lanka

Friday, 19 July 2019

In Sri Lanka, women’s formal workforce participation is at only 36%, compared with 75% for men. Sri Lanka could raise its gross domestic product by as much as 20% in the long-run by closing the gender gap in the workforce, according to one estimate

Who should be our next president?

Friday, 19 July 2019

After the recent terrorist attacks and the subsequent violence unleashed against innocent Muslims by racists, Sri Lankans are searching for a leader who can save the country. Many have lost faith in the leaders, due to the breakdown in the security a

Columnists More