The Council of Ministers yesterday (10) approved a proposal to implement a working capital loan program on concessional terms to revitalize public enterprises affected by the Covid-19 pandemic.
The proposal noted that the surveillance activities of around 282 fully or partially government-owned companies in action currently have been paralyzed due to the non-functioning of an appropriate market mechanism due to the pandemic situation. As a result, companies have faced a challenge in providing the working capital required for day-to-day operations.
At the end of 2020, with the repercussions of the Covid epidemic throughout the country, the government set up a concessional loan program called the “Saubhagya Covid-19 Rehabilitation Facility”, under the supervision of the Central Bank of Sri Lanka (CBSL ), in order to meet the working capital needs of small and medium-sized sectors. Approximately, Rs. 156 billion has been granted to around 53,200 entrepreneurs under this loan program.
Accordingly, the Cabinet of Ministers approved the resolution provided by the Minister of Finance to offer the possibility to meet the working capital needs of SOEs under the said loan program.