Sajith urges Govt. to prioritise SMEs or risk another economic crisis

Wednesday, 30 July 2025 00:08 - - {{hitsCtrl.values.hits}}

Opposition Leader

Sajith Premadasa

Warns growth is essential to meet debt repayment targets by 2028
Criticises Govt.’s short-term fixes and lack of structural support
Blames current SME struggles on Easter attacks, COVID-19, and economic crisis
Slams banks for charging excessive interest rates to struggling SMEs
Plans to propose motion in Parliament for transparency in SME credit decisions
Urges banks to balance profits with responsibility and empathy

Opposition Leader Sajith Premadasa recently called on the Government to take urgent and practical action to address the challenges faced by small and medium enterprises (SMEs), warning that failure to do so could derail the country’s fragile path to economic recovery.

Speaking following a recent meeting with SMEs at the Opposition Leader’s Office, Premadasa emphasised that SMEs contribute over 50% of Sri Lanka’s GDP and generate more than 4 million jobs, making them the backbone of the economy.

He argued that unless the sector receives adequate support, Sri Lanka will struggle to generate the growth needed to begin debt repayments by 2028, as committed under the restructuring deal.

“The Government must stop offering ‘plaster solutions’ to cover up real issues that weren’t created by these entrepreneurs, but stemmed from the Easter Sunday attacks, the COVID-19 pandemic, and the broader economic crisis,” he said.

Premadasa also criticised the banking sector’s approach to credit access and interest rates, noting that many SMEs have complained about being charged exorbitant rates.

He announced plans to propose in Parliament a motion requiring banks to disclose how credit decisions are made and interest rates are determined for SMEs who have been affected by the triple crisis.

“The financial institutions are exploiting the vulnerability of the SMEs grappling with financial distress,” he charged, urging the Government to regulate predatory practices if the sector is to survive.

The Opposition leader also warned that a lack of genuine economic growth could result in another economic collapse, reiterating the Opposition’s commitment to keeping the spotlight on the SME sector in Parliament.

He suggested that if the Government fails to act, new regulations will be proposed to the legislature to protect SMEs from unreasonable lending terms.

Premadasa urged financial institutions to balance profitability with national responsibility and empathy. “The banking sector must stop viewing SMEs purely as profit opportunities and instead support them with reasonable and empathetic lending terms, considering their contribution to the economy,” he stressed.

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