During continued lockdowns of Sri Lanka, the SME and micro sectors have clearly proven their critical role in not only sustaining the domestic FMCG supplies, but even saving households from shortages –and hunger itself.
Sri Lanka’s Confederation of Micro, Small and Medium Industries (COSMI) on 13 May hailed the achievements of SME and micro sellers and delivery rider services during lockdowns as a clear proof of the sector’s untapped potential as the last mile link in FMCG supply chains.
“We saw their capacity for Just In Time (JIT) delivery of essential items and groceries. With remarkable speed they largely saved people from shortages and hunger,” said COSMI Founder President Nawaz Rajabdeen on 13 May assessing the outcomes of door-to-door delivery services.
The Commercial Bank of Ceylon, Sri Lanka’s largest payment card issuer, has announced a new partnership with Visa, the global payments technology leader, to launch CyberSource, a global payments management platform that will further expand the array of payment services available to any merchant looking for digital payment solutions.
CyberSource enables Visa to offer merchants a one-stop technology solution for accepting payments. Merchants of all sizes can improve the way their customers engage and transact, mitigate fraud and security risk, lower operational costs and adapt to changing business requirements. The solution covers payment security features such as the Payment Card Industry Data Security Standard (PCI-DSS) certification as required by the payment schemes and 3D Secure authentication that safeguards sensitive payment data and protection against e-commerce frauds.
The Monetary Board of the Central Bank of Sri Lanka (CBSL), in the wake of the possible adverse impact on liquidity and other key performance indicators of licensed commercial banks and licensed specialised banks (licensed banks) due to the implementation of the credit support scheme to assist COVID-19 hit businesses and individuals, and the need to meet other urgent liquidity needs of banks, considers it imperative to strengthen the liquidity positions of banks.
Accordingly, the Monetary Board has decided to implement the following extraordinary regulatory measures to strengthen the liquidity positions of licensed banks, under the provisions of the Banking Act and the Monetary Law Act, to ensure the continued supply of credit and to meet urgent liquidity needs of banks during these exceptional times.
These includes. a) Provide additional funding under the refinance facility or other credit operations enabling the banking sector to provide working capital and other loans at concessionary rates of interest, to spur demand in the economy, b) Up to 30 June 2021: (i) permit licensed banks to consider certain assets as liquid assets in the computation of the Statutory Liquid Assets Ratio (SLAR) subject to conditions, and (ii) reduce the minimum requirement of Liquidity Coverage Ratio and Net Stable Funding Ratio to 90% with enhanced supervision and frequent reporting.