One can expect a further boom in business activities next year with inflation down to single digit and interest rates falling drastically, Central Bank Governor Dr. Nandalal Weerasinghe told the Bank of Ceylon (BOC) Business Forum held on Thursday in Colombo.
“The consumer price index has come down to 1.3% in September against a 69.8% inflation during the same month last year and the food inflation which was at 95% at that time is very much less now resulting in the interest rates reducing accordingly and the CBSL has requested to provide that relief as soon as possible to the borrowers,” he opined.
Dr Weerasinghe said they have requested banks to reduce the interest rates in order to enable the business community to continue their business activities unhindered and also facilitate the enhancement of their business operations. With the interest rates coming down the business community will be able to borrow more money and next year with the rates also stabilizing further one can expect a further boom in business activities. The Governor commended the BOC on the success of the Business Revival and Rehabilitation program carried out by the bank which saw most of its borrowers being revived and rehabilitated during the crisis period and now gradually rebuilding their businesses.
“Reviving businesses was a significant move and in the future with the expansion of the private sector and after the restructuring process less involvement with the State sector, the expertise obtained by the banking staff would be vital in key decision making.”
“Therefore the skill and expertise gathered by the bank’s Business Revival & Rehabilitation unit would be significant for the BOC’s future endeavors and success,” he noted.
A bank’s reputation lies on how it during a difficult time stayed with the borrowers and revived and rehabilitated them and the Business Revival and Rehabilitation Unit has managed to do that task in a very successful manner and the management of BOC needs to be acclaimed for that, Dr Weerasinghe added.
“BOC’s Business Revival and Rehabilitation Unit saved many businesses & jobs”
Ronald C Perera PC, Chairman BOC said that CBSL Governor after one and a half years has not only been able to salvage the falling car but retrieve it and almost bring it close to the road.
He said the revival unit was started in 2020 and much property that was meant for auction was saved by the unit and those enterprises have progressed to greater heights.
He thanked Rohana Kumara, Deputy General Manager BOC and his team for the splendid job they did.
Chairman BOC
Ronald C Perera PC
Perera said many non performing loans by now have been brought under control and many new business diversifications and innovative products have been introduced by these entrepreneurs who were given a new lease of life by the Revival and Rehabilitation Unit of the BOC.
Russel Fonseka, General Manager of BOC said at the time of the crisis many businesses went into bankruptcy or were in the verge of total collapse and instead of claiming debts and taking legal action the CBSL requested the BOC to try to revive those businesses in trouble and the unit which was set up for that purpose by the BOC has achieved many feats in that regard by saving many businesses and jobs and made a substantial contribution to the Sri Lankan economy.
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