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Message: <blockquote data-quote="priyade" data-source="post: 25473609" data-attributes="member: 565365">Sri Lanka’s COVID-19 relief loan schemes hit by credit risksThe island’s relief allocation which includes cash disbursements to households is estimated at less than 0.5 percent of GDP (compared to India 10%, Thailand 9.6%, Vietnam 3.5% and the Philippines 3.1%). Sri Lanka government debt as a percentage of gross domestic is also the highest amongst these counties at 89% (India 72%, Vietnam 43%, Thailand 10% and the Philippines 39%).<img src="https://economynext.com/wp-content/uploads/2020/06/Sri-Lanka-COVID-19-Relief-vs-peers-300x169.jpg" alt="" class="fr-fic fr-dii fr-draggable " style="width: 758px" />Sri Lanka, however, has put the burden of credit relief on banks and new money creation with no fiscal or credit risk support.High debt levels of the government may be the reason.“Long periods of putting off tough (fiscal) reforms has come to haunt us because now we don’t have the fiscal space to deal with the economic challenges caused by the pandemic,” said Anushka Wijesinha, an economist and an independent director at a bank addressing a recent webinar hosted by the Ceylon Chamber of Commerce.According to the Ceylon Chamber of Commerce, Sri Lanka requires an economic relief package of about 2.5 – 3 percent of GDP.Sri Lanka Exporters Association President Rehan Lakhany told EconomyNext that loan applications of many of SME members had been rejected by banks. Harpo Gunaratne, President of the Colombo Collective Restaurant Association said his members faced similar problems.  It was announced that hotels and travel agencies would get five-year loans at 4 percent to pay up to 20,000 rupees per month per employee for up to six months,” Guneratne said.<a href="https://economynext.com/sri-lankas-covid-19-relief-loan-schemes-hit-by-credit-risks-71163/" target="_blank">https://economynext.com/sri-lankas-covid-19-relief-loan-schemes-hit-by-credit-risks-71163/</a></blockquote>

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