Parate Law : Govt considers further relief for SMEs

The government has engaged in a special discussion to consider potential steps that could be taken to further support struggling Small and Medium Enterprises (SMEs) before the expiration of the Parate law used for debt recovery.

According to the President’s Media Division (PMD), a special meeting was held at the Presidential Secretariat today (11 Nov) to address relief measures for SMEs facing financial challenges. 

The meeting was led by the Senior Additional Secretary to the President for Finance and Economic Affairs, G. N. R. D. Aponsu, and included officials from the Ministry of Finance, the Central Bank of Sri Lanka, and Sri Lanka Banks’ Association (Guarantee) Limited. 

The discussions focused on the financial difficulties encountered by SMEs due to loan obligations. 

Currently, debt recovery processes under the Parate law have been temporarily suspended for SMEs, with this suspension set to expire on December 15. The meeting considered potential steps that could be taken before the expiration date to further support struggling SMEs.

The meeting also examined ways for the banking sector to provide additional support to SMEs and boost productivity in the economy. 

During the discussions, it was decided to compile a comprehensive report on the loans taken by SMEs from banks. This report will serve as a basis for designing future relief measures.

Additionally, the Central Bank of Sri Lanka and various commercial banks have also commenced evaluating the steps needed for the temporary suspension of debt recovery under the Parate law for SME loans. (Islandnews)

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