Sri Lanka tourist sector get relief on tsunami recovery loan

Jan 16, 2008 (LBO) – Sri Lanka’s tsunami affected tourism sector is to get repayment extensions running up to three years for loans taken up under the ‘Susahana’ and Small Business Revival Program (SBRP) lending schemes, the Central Bank said.

Under the relief program, those who took SBRP and Sushana tsunami loans would receive a repayment extension of two years, and a further grace period of one year.

The Central Bank said in a statement it has disbursed 4,764 million rupees to finance 10,532 enterprises that were affected by the tsunami which hit Sri Lankan coastal towns on December 26, 2004.

The bank said that it implemented the two major refinance loan schemes through 32 participating financial institutions in order to assist Micro Small and Medium scale Enterprises (MSMEs) that were affected by the tsunami.

“Approximately 400 tourism related MSMEs, including hotels, restaurants, guest houses, gem and jewellery, and batik and garments businesses had been financed with 1,077 million rupees under the two loan schemes,” said the Central Bank.

Of the tourism related businesses affected by the tsunami, 586 are medium and large scale hotels and restaurants, which were allowed to borrow a maximum of 60 million per singl