High NPAs in SME sector: Who is responsible?

SMEs operate without formal registration, registered as proprietorships, partnerships or a limited liability companies. Irrespective of legal status, generally SMEs are proprietary nature. They do not have a corporate management structure and they are managed by the sponsor himself, commonly called a “one man show” – Pic by Shehan Gunasekara

Monday, 20 August 2018

Non-Performing Assets (NPAs) of the banking sector have been increasing in the recent past. Gross NPA ratio reached about 3.3% as at end of May2018 recording an increase of about 0.8% over the past five months. The banking sector reached the best gross NPA ratio of 2.5% as at the end of 2017 for the past five years. Therefore deterioration of the ratio by 0.8% during the period of five months ended May 2018 should be a cause for concern across the sector.

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