State banks must use CB policies to strengthen economy: President

Friday, 19 June 2020 00:08 -     - {{hitsCtrl.values.hits}}



  • Tells People’s Bank to fully utilise CB refinancing and relief programs
  • Encourages branches to take banking to rural areas, select best customers and review productivity of loans
  • Says People’s Bank can work with UDA to meet middle class housing needs

President Gotabaya Rajapaksa has emphasised that it is the responsibility of State banks to utilise the relief provided by the Central Bank to strengthen the economy affected by COVID-19, the President’s Media Division (PMD) said yesterday.  

The global economy has been hit hard by COVID-19. As such all types of businesses including agriculture, small and medium enterprises should be directly assisted and uplifted to overcome the prevailing crisis, the President had said during a meeting held at the Presidential Secretariat on Wednesday to review performance of People’s Bank.

“Following the discussion held with the Central Bank, opportunity is now open for State banks to create the environment that is needed to revive the country’s economy.

The President said that Sri Lanka must move forward with a new development program deviating from the traditional methods to achieve economic prosperity,” the statement said.

He went on to note that money should circulate across the country and it is the responsibility of the 600 People’s Bank branches in the country to deduce the true customers and business to issue loans. All managers are obliged to carry out follow up reviews of loans and their productivity.

President Rajapaksa noted that this is the right opportunity to take the banking system to the rural areas. President warned not to offer loans for importation purposes.

President stressed that respective parties must benefit from the six-month relief period granted for the payment of leasing instalments. Priority should be given to construction companies as well. He further added that People’s Bank has the opportunity to meet the housing requirements of middle income earners in collaboration with the Urban Development Authority.

People’s Bank Chairman Sujeewa Rajapaksa briefed the President on the projects launched by them in past eight months.

Secretary to the President P.B. Jayasundera, Secretary to the Treasury and the Ministry of Finance S. R. Attygalle, General Manager Boniface Silva, the Board of Directors and the upper management of the People’s Bank and People’s Leasing were also present at the discussion.


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