The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Deputy Chairperson, today’s debate on the disaster caused by the “@OOo” cyclone and rebuilding affected people is very important.

¶ 02 First, about preparedness, mitigation, and the functioning of the State machinery: we welcome the Opposition’s calls to do what they failed to do when they governed. Hon. OVS Kavirathna said some people must be resettled and protected; it is significant that someone from a family of hereditary politicians now says people live in danger.

¶ 03 Some spoke of institutional weaknesses — institutions they weakened while in power: no technology, no proper staffing, no capacity. Now there are small gaps; this debate should be used to fix those and move forward.

¶ 04 From the Ministry of Industries and Entrepreneurship, the disaster rendered many industries inoperable. Our priority was to revive industries and businesses. Within one to two weeks, thanks to the efficiency of the Highways, Power, and Water agencies, over 90% of large industries resumed. We focused on restart: we set up a Disaster Management Centre within our Ministry, equipped it, and asked affected industrialists and entrepreneurs to contact us and report immediate issues. We are pleased that volunteers, especially in IT, created floodsupport.org; we adopted that platform to gather about 30,000 data points from businesses. We restored access — roads, power, and workforce — to get businesses running and thus accelerate economic recovery.

¶ 05 In consultation with the President, we decided to grant Rs. 200,000 without prior estimates to MSMEs. The circular specified that for entities linked to our Ministry’s agencies, disbursement would be via those agencies; for others, through the DMC via Divisional Secretaries. Our officials conducted a special operation over two Saturdays and identified 6,370 industrial beneficiaries as eligible. We have data for about 9,000 industrialists; others are being routed through Divisional Secretariats. So far, 1,395 have been paid Rs. 200,000 each. By 31 December, Rs. 1 billion was allocated; though lapsing rules applied post-31 December, we re-requested funds and the process continues. Our aim is to pay all 6,370 agency-linked beneficiaries by 31 January.

¶ 06 The Central Bank has issued a circular granting a six-month moratorium with no penal interest; and advised commercial banks to provide new credit at interest below 10%. The Government has also channelled Rs. 10 billion to banks to on-lend at 3% for working and fixed capital to affected businesses: micro/small up to Rs. 250,000/1,000,000, and large up to Rs. 25 million, with grace periods. We are also launching the Industry Recovery Foster Programme (IRFP) with major corporates — Brandix, Browns, Cargills, CBL, DIMO, Expolanka, Hayleys, Hydramani, JKH, MAS Holdings, Nestlé, Tokyo Cement, Toyota Lanka, Unilever — partnering voluntarily with the Ministry to mentor and support 200 heavily affected industries.

¶ 07 We are coordinating with the Finance Ministry to allow duty-free or duty-refund-based re-import/replacement of destroyed machinery, and with UNDP on credit guarantees and risk management frameworks, which many industries lacked. We will embed risk management and appropriate insurance — including for flood-prone areas — and develop a national plan so future shocks do not derail industry. Thank you.