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Parate execution now extended until March 31, 2025 :
Over 99% borrowers with outstanding capital of less than Rs.25 mn:
A comprehensive programme has been implemented in a very short period of time with regard to parate law to create a business-friendly environment in the country, said Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma.
The Deputy Minister stated that discussions were held involving all relevant parties, including the Ministry of Finance, the Central Bank, the banking sector, and small to medium-sized entrepreneurs, for the purpose.
“Instead of merely postponing the Parate execution date, the Government engaged with stakeholder groups to ensure acceptable solutions was found for this long-standing issue. As a result, the Parate execution has now been extended until March 31, 2025”, he said.
He added that this package aims to ensure that the SME sector can actively contribute to the economy. Dr. Suriyapperuma made these revelations at a media briefing held at the President’s Media Centre yesterday.
He added that a 99% of the people who are troubled by taking loans have a capital amount of less than Rs.25 million.
“Based on data provided by the Central Bank, 99% of borrowers with outstanding capital of less than Rs.25 million in restructured loans have been granted a 12-month extension to renegotiate with banks and agree on a settlement path. Borrowers with debts between Rs.25 Mn and Rs.50Mn have been granted a nine month extension, while all other borrowers are entitled to a six month extension.
He added that extension of the period suspending the implementation of Parate Law and relief measures will give the greatest benefit to the largest number of people.
The relief for businesses is not only in the form of an extension of time. This relief package, proposed by the Government and to be implemented through the Central Bank, also includes several other important measures, such as easing the credit rating status, extending the repayment period, offering low interest rates for restructured debt, and providing a transparent mechanism to resolve valuation disputes.
