Industries Minister compares debt to relationships

Saturday, 29 March 2025 01:02 - - {{hitsCtrl.values.hits}}

Claims banks often fail to recognise past contributions of borrowers when they encounter financial hardship
Asserts Govt.’s awareness on challenges, reveals discussions with banks underway to seek relief measures
Calls on banks to encourage long-term partnerships with borrowers, particularly struggling SMEs
Encourages business owners in distress to initiate talks with banks as soon as possible

Sunil Handunneththi

Industry and Entrepreneurship Development Minister Sunil Handunneththi on Thursday called for a more comprehensive approach to debt collection, drawing an analogy between financial obligations and personal relationships.

Speaking at an event organised by the Regional Development Bank, he pointed out that banks often fail to recognise past contributions of borrowers when they encounter financial hardship.

“Debt can be like certain girls,” he said, making a controversial comparison between bad debt and what he described as the behaviour of certain women.

He claimed that just as some personal relationships overlook past kindness, banks often disregard previous repayments, deposits and financial sacrifices when a borrower struggles.

Anticipating potential criticism, Handunneththi told bank officials in the audience not to take offence. “Not all banks behave this way. But when customers face difficulty, banks tend to bring up historical data and past commitments—rather than recognising the goodwill shown by these individuals in better times,” he said.

He likened the 31 March deadline for debt repayments to a moment of reckoning in relationships, suggesting that many borrowers fear this date as a point when their assets many be seized.

The Minister urged the banks to encourage long-term partnerships with borrowers, particularly small and medium enterprises (SMEs) that have been struggling since the COVID-19 pandemic and economic crisis.

Handunneththi emphasised the Government’s awareness of these challenges and revealed that discussions with banks are underway to seek relief measures.

He encouraged business owners in distress to initiate talks with banks as soon as possible. “If we fail to reach agreements even after December, banks will also be compelled to make difficult decisions,” he warned, signalling that financial institutions many have no choice but to enforce debt recovery policies if solutions are not found.