Categories: HeadlinesBusiness

LNP – Sri Lanka discuss execution of ‘parate’ law as suspension ends mid-December

Sri Lanka’s banks, regulators, and small and medium enterprises have met at the Presidential Secretariat to discuss the execution of ‘parate’ law and the difficulties in loan repayment faced by the SMEs.

The law on parate execution, which allows banks to auction collateral on defaulted loans, has been suspended until December 15, 2025.

According to the President’s Media Division, the meeting, led by the Senior Additional Secretary to the President on Finance and Economic Affairs, G.N.R.D. Aponsu, addressed the financial challenges SMEs face due to loan obligations and explored potential measures to support struggling SMEs before the suspension ends.Â

It has also been decided to compile a comprehensive report on SME loans from banks to serve as a foundation for future relief efforts.

The statement further noted that the Central Bank of Sri Lanka and various commercial banks are assessing steps needed for the temporary suspension of debt recovery under the Parate law for SME loans.

Tyronne Jayamanne

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