Colombo Chamber writes to President for pre-shipment collateral-free loans to boost exports

Tuesday, 19 May 2020 00:00 - - {{hitsCtrl.values.hits}}

The Colombo Chamber of Commerce has written to President Gotabaya Rajapaksa requesting for pre-shipment collateral-free loans to boost exports.

Lauding the efforts of the President thus far to accelerate the economy and combat the issues faced particularly by the SME and MSME, the Chamber said the suggestion of pre-shipment collateral-free loans was an “out of the box” approach to boost exports.

“Colombo Chamber of Commerce which is working to empower the youth of Sri Lanka appeals to the President for intervention to instruct Banks to support the SME and MSME Exporters with pre-shipment collateral-free loans up to 75% of the value of export order with a maximum cap of Rs. 5 million based on actual export orders and firm contracts,” the letter said. “As per Government Directive CBSL has already guaranteed up to 75% of the loans, banks should not have any qualms to act proactively in support of the President’s National Export Drive by extending collateral free loans,” it added. Colombo Chamber President Saranga Wijeyarathne said: “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, knowhow and technical understanding are with them.”

“Globally exporters are given support by their respective Governments and even our neighboring country India has sanctioned collateral free loans running into big figures,” he added. He said the Chamber’s proposal will give opening to a new breed of exporters and create a new tier and explore markets and clients which big exporters omit due to lower margins and smaller quantities. “Further this may open new doors and vistas to value add our economy. Since CBSL has agreed to guarantee 75% hence the banks should apply the President’s ideology of out of the Box thinking and support this crucial sector,” Wijeyarathne added