Samurdhi banks face liquidity crunch over unlocking funds for poor
View(s):The Government has been dipping into the savings of Samurdhi beneficiaries to the tune of more than Rs.50 billion to pay the Rs. 5000 dole for two months to four million beneficiaries.
As a result of this withdrawal, Samurdhi banks are facing liquidity and capital adequacy challenges including subdued loan growth, liquidity issues and erosion of deposits amid lower interest rates, economic analysts said.
More than Rs. 50 billion has been paid to these beneficiaries affected by the ongoing coronavirus pandemic for the months of April and May, each totaling Rs. 25 billion.
In addition, the Government made an advance payment of Rs. 10,000 to two million Samurdhi beneficiary families in April prior to Sinhala and Tamil New Year.
This money has been released by Samurdhi banks and its recovery will depend largely on the duration and severity of the coronavirus outbreak, Samurdhi Development Department Director General R.P.B. Tillakasiri said.
Furthermore a separate sum of Rs. 25.72 billion has been disbursed among the poor as relief allowance for May, official data showed. For this amount, the government has raised additional sum of Rs. 16 billion from a state bank loan with a Samurdhi Fund guarantee to pay Rs. 5,000 allowance to the poor, cabinet spokesman minister Bandula Gunawardena told the Business Times.
However, the allowance for the month of June will not be paid in accordance with the Election Commission’s guidelines, he disclosed.
The first phase of this programme was carried out to provide a grant of Rs. 5,000 to around four million Sri Lankans who make up the vulnerable sections of the population, including senior citizens, people with disabilities, kidney patients, and Samurdhi recipients. (BS)