Finance and leasing companies to benefit:

CB introduces 4.2 billion stimulus package

Lumbini EDIRISINGHE

The Central Bank (CB) is in the process of introducing a stimulus package worth over Rs. 4.2 billion for finance and leasing companies to mobilize their institutions to resolve the current liquidity problem and to build confidence, Governor Ajith Nivard Cabraal said.

“The Central Bank has designated Lankaputhra Bank to grant loans for those institutions to resolve liquidity problems. The reason being Lankaputhra Bank was selected because of its innovative thinking and flexibility,” he said at a media conference

“Lankaputra Bank can help people who want to sell their lands or to obtain loans to meet urgent financial requirements.

Finance and leasing companies have been asked to provide collateral to avoid liquidity problems following the controversial issues, which surfaced in the recent past. This will help to build the confidence among the public on banks and financial institutions,” he said.

“We request customers to do transactions with banks and financial institutions to increase liquidity,” he added.

Finance and leasing companies could reduce bank interest rates with the coming down of inflation in the country.

Therefore, they can easily provide relief to people by reducing interest rates, Deputy Governor Dr. Rani Jayamaha said

She said the Central Bank is anticipating that finance and leasing companies will take steps to reduce the liquidity ratio to 10 percent from 15 percent.