COLOMBO, Aug. 15 (Xinhua) -- Sri Lanka must strengthen its banking and financial sectors amidst the COVID-19 pandemic, a newly appointed state minister said.
State Minister of Finance and Capital Markets and Public Enterprise Reform Ajith Nivard Cabraal, while assuming duties at the Ministry of Finance in capital Colombo on Friday, called for swift relief in the form of cash grants, tax breaks, debt and interest moratoriums and concessionary loans for COVID-19 affected businesses.
"The Finance Ministry will have to review the policy on finance companies and if necessary introduce new regulations to prevent their collapse and explore the possibility of rebuilding some finance companies where thousands of unsuspecting clients have deposited their hard-earned savings," State Minister Cabraal was quoted as saying in a local daily Saturday.
He also stressed the challenges faced by Sri Lanka's export sector due to a contraction of demand in importing countries in Europe and North America. He added that key export segments such as tea, rubber, and apparel have registered swift recoveries in recent months.
Emphasizing the need for the country to find new niche markets, Cabraal said, "Local products have to be of high quality on par with those in the global market. The Finance Ministry will create the environment necessary to achieve this goal by introducing tax reforms, monetary and banking regulations, and financial backup."
The state minister said that the COVID-19 pandemic was an international phenomenon affecting not just Sri Lanka, but the entire global economy, and called for broad international co-operation in fighting against it. Enditem
