The Micro, Small, and Medium Enterprises (MSME) Chamber of Sri Lanka has urged the Central Bank of Sri Lanka (CBSL) to withdraw its recent circular, which states that the suspension of ‘Parate’ law execution will not extend beyond March 31, 2025.
Addressing a press briefing, Susantha Liyanaarachchi, Media Secretary of the MSME Chamber, called on the CBSL to issue a revised circular in line with the directives recently announced by the Deputy Minister of Finance.
Liyanaarachchi elaborated:
“The Deputy Minister of Finance has provided clear guidance to banks. He stated that they must either waive the interest entirely or offer a long-term debt repayment plan. Furthermore, he instructed that no action should be taken against defaulters who have initiated legal proceedings. These measures must be implemented before January 1 next year.”
Criticizing the CBSL’s stance, he added:
“The Central Bank Governor, in a circular issued on December 20, cited the Sri Lanka Banks’ Association’s view that the suspension of Parate execution would end by March 31, 2025. On what authority can such statements be made? The Governor cannot simply act based on the opinions of associations without due consideration.”
Liyanaarachchi further warned:
“If the Governor of the Central Bank attempts any maneuvers similar to those seen under the previous government, he will face significant opposition. We demand the immediate repeal of the December 20 circular and the issuance of a new one that aligns with the Deputy Minister’s statement. Failing this, we foresee serious repercussions for the banking sector in the coming year.”
