The Women's Chamber of Industry and Commerce (WCIC) has encouraged all stakeholders to support the Domestic Debt Optimization (DDO) framework and work towards reviving the economy.
The WCIC, as the National Chamber for women entrepreneurs and women in business has been working since inception to strengthen and assist especially the SME and micro women entrepreneurs to increase their contribution to the economy.
Issuing a statement, the WCIC said it is hopeful that the DDO framework that was approved by the Cabinet of Ministers will result in reduction of interest rates which in turn will help businesses to access financing at a reasonable cost, resulting in increased contribution to Sri Lanka's GDP.
"Growth in businesses will undoubtedly result in increased revenue to the Government and ensure sustainability of our sovereign debt," the statement said.
"WCIC wishes to appreciate the role of the President, Governor of Central Bank, Ministry of Finance and other relevant authorities in formulating the Domestic Debt Optimization framework considering the best possible solutions. We look forward to proactive engagement from all Government Institutions and Financial Institutions to support and assist businesses to increase their economic contribution to revive our economy," it added.
CBSL reduces policy interest rates
Meanwhile, the Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to reduce the bank’s standing deposit facility rate (SDFR) and the standing lending facility rate (SLFR) by 200 basis points to 11.00 per cent and 12.00 per cent, respectively.
The Board expects that, with this reduction of policy interest rates by 200 bps, and the reduction of policy interest rates by 250 bps in early June 2023, along with the significant reduction of risk premia on government securities witnessed recently, the market interest rates, particularly lending rates, will adjust downwards adequately and swiftly.
“Therefore, the banking and financial sector is urged to pass on the benefits of this significant easing of monetary policy by the Central Bank to individuals and businesses, thereby supporting economic activity to rebound in the period ahead,” the CBSL said.
