The Hon. (Dr.) Harshana Suriyapperuma

¶ 01 The Central Bank, as an independent institution, determines interest rates. The Government does not set them. However, as I said, the Government has implemented concessionary lending programmes. A portion of the interest is reimbursed by the Government to participating banks for SME lending—about a 4% concession—so that loans can be provided at around 7%.

¶ 02 On your second point regarding SriLankan Airlines: you are aware how prior Governments managed SOEs—without financial discipline, with political interference, outside tender and procurement processes—earning the title “loss-making SOEs”. The present Government has appointed capable management and initiated proper assessments. Last year SriLankan Airlines was reported as an entity earning profits operationally, but legacy debts still need to be serviced. The accumulated losses and massive financial costs cannot be borne by the enterprise alone. Therefore, during this transitional period, without abandoning it, necessary support has been provided so that a plan already in place can be continued successfully, Hon. Member.