Businesses could face bankruptcy – Koya
30 May, 2020, 7:19 pm
More than 500 businesses say they could become bankrupt if the COVID-19 crisis continues for another six months.
This was the word from Commerce Minister Faiyaz Koya.
He made the comment in response to a question from government parliamentarian Vijay Nath about the results of a business survey conducted in partnership with International Finance Corporation.
Mr Koya said more than 3500 businesses participated in the survey.
“Prior to the pandemic, 71 per cent of the respondents stated that their businesses were stable and thriving, and these businesses were able to set aside cash reserves and to make savings from profits,” he said.
“And pre-COVID-19 was, of course, a reflection of our 10-year unprecedented economic growth.
“In terms of revenue, 1200 businesses stated that they expect a decrease in their revenue by 75 per cent should the impacts of COVID-19 continue for up to another six months, with about 512 of them expecting bankruptcy.”
National Federation Party leader Prof Biman Prasad asked Mr Koya if data from the survey was available to the public.
Mr Koya said the figures he discussed were preliminary findings and the final report was expected by June.