Finance sector gets stimulus package

Chaminda PERERA

The Cabinet of Ministers yesterday approved a mega-stimulus package of Rs. 4,500 million to revive the leasing and finance sector to ensure the stability of the country's financial system.

Addressing the media at the Information Department, Export Development and Internal Trade Minister Prof. G.L. Peiris said the Government is in the process of shaping its economy in the wake of the election victory in the North Western and Central Provinces.

"This stimulus package is aimed at reviving the leasing and Finance sector which is presumed to be affected by the financial crisis to some extent. This initiative will also help reduce the existing interest rate benefiting small-scale industrialists too, the Minister said.

Vehicles are using idle in company premises when confiscated for failing to pay installment. This has caused heavy losses to companies and is a bad omen for the national economy in the long run, the Minister said.

"In this backdrop, the Government decided to introduce a stimulus package for such companies which have been registered with the Central Bank under several conditions," he said.

The Government pays 60 per cent of such assets to the particular company to overcome financial difficulties on several conditions.

They are allowed to use any excess land they possess as collateral against their loans.

The Central Bank facilitates 60 per cent of the market value as a loan through the Lanka Putra Development Bank.