Following strong sentiments expressed by the President earlier today, the Central Bank announced new credit schemes to revive the economy.

The President blamed CB officials on their lethargic approach in implementing economic reforms. The President issued an ultimatum for CB officials until tomorrow to present their own plans.

“Growth of the Sri Lankan economy has fallen to dismal levels over the past few years,” the CBSL said in a statement. The bank also said the impact of the COVID-19 pandemic may result in severe stress on economic and financial system stability in the country.

The central bank will also provide funding to licensed commercial banks in addition to the Rs 27.5 billion disbursed under the refinance scheme.This would be granted at the concessionary rate of one per cent on the condition that commercial banks will on-lend to domestic businesses at four per cent.

“This scheme along with the existing refinance Scheme will provide Rs. 150 billion in total to the businesses affected by the COVID-19 pandemic,” the statement added.