The Government has decided to extend the suspension of the Parate Law which prevents the auctioning of collateral for defaulted loans by banks until March 31, 2025.
The Committee on Public Finance (COPF), under the previous Government, conditionally approved the suspension of Sri Lanka’s Parate Execution Law until December 15, 2024.
Considering the requests made by small and medium scale (SME) entrepreneurs, the Government has decided to extend the suspension of this law.
Cabinet Spokesman Minister Dr. Nalinda Jayatissa said that the Cabinet of Ministers has also granted its consent to the proposal forwarded by President Anura Kumara Dissanayake in his capacity as the Finance Minister to continue the suspension and establish a mechanism to address the issue in collaboration with all stakeholders.
The Minister further said that the Government has identified the importance of introducing an action plan for SME entrepreneurs to pay back loans without the auctioning of their properties. This would be a more progressive solution for both parties, he said.
(dailynews.lk)
(This story, originally published by Daily Mirror has not been edited by SLM staff)
