Boost consumer spending, attract investments to revive an ailing economy: Ravi

The former minister said that it is pointless to ask struggling entrepreneurs to obtain bank loans since many find it difficult to provide adequate collateral or sustain viable revenue streams.

Karunanayake pointed out that the country's economy was in bad shape even before the pandemic but has been hit worse since. Under a UNP government, he said they would focus on building a conducive environment to bring back business confidence.

He also pointed out that the businesses will need to be protected by the financial support of the Central Bank. "The Central Bank will have to take the risk factor and ensure that the businesses are made viable once again," he said.

One of the biggest problems the bankers face is the inability by loan applicants to present a sustainable payment plan which would result in the loan being not approved. "This is where, if it's a viable company, the government steps in to do that," he added.

Karunanayake, a former foreign minister, also pointed out the need to capitalise Sri Lanka's relationships with the international community.

"We need to embrace our friendly nations, to ensure investments or loan facilities to the government, which in turn could be recycled back as funds to the people," he said.