2021 Budget more significant given COVID-19 challenge: SCB SL CEO

Friday, 20 November 2020 04:09 - - {{hitsCtrl.values.hits}}

Standard Chartered Bank Sri Lanka CEO Bingumal Thewarathanthri

Standard Chartered Bank Sri Lanka CEO Bingumal Thewarathanthri said yesterday that the National Budget of 2021 was more significant given the challenges arising from the COVID-19 pandemic.

He emphasised this ahead of today’s Daily FT-Colombo University MBA Alumni Association post-2021 Budget Forum for which Standard Chartered Bank is the Strategic Partner.

“Year 2020 has been challenging. Extended lockdowns in Sri Lanka contributed to a loss of business, affecting both domestic production and the import-export economy. Needless to say, this adversely affected the banking sector, both in terms of (necessary) loan moratoriums and a rise of NPLs. In this backdrop, the National Budget plays a significant role as compared to any other time,” Thewarathanthri said.

According to him, all over the world successful governments have accepted stress on fiscal deficit to support the industries and Sri Lanka is not an exception. However, Sri Lanka will have to balance its ambition with medium-term debt sustainability, he added.

“After a long time, we have seen some assurance on policy consistency with this Budget, which will support the FDI agenda for the country and will also boost the domestic companies venturing into sectors specified by the Strategic Development Projects Act,” Thewarathanthri pointed out.

“Now, the banking sector needs to boost confidence in the market, repurposing financial instruments to suit the unique needs of the economy and innovate more holistic value propositions to respond to differing circumstances. Whilst financial sector stability is a top priority, it is imperative that banks offer unconventional financial services with calculated risks,” the SCB Sri Lanka CEO emphasised.

“With the Government flagging the national need to change the Sri Lankan mindset to a production-based economy that supports exports and domestic production capabilities with less imports, the onus is on the banks to assist the Government to kick-start the economy, for businesses to thrive and the nation to progress,” Thewarathanthri added.