The Ministry of Finance has announced that the suspension of the implementation of the Parate Law, which directly affects small and medium-sized enterprises (SMEs), will be further extended.
Issuing a statement, the Ministry stated that the implementation of the Parate Law, which was previously suspended until March 31, has now been extended until December 31, 2025.
According to the Ministry of Finance, the extension is applicable to SMEs that have borrowed less than Rs. 25 million.
The extension until September 30, 2025, will apply to SMEs that have borrowed between Rs. 25 million and Rs. 50 million.
Furthermore, the extension until June 30, 2025, will apply to SMEs that have borrowed more than Rs. 50 million.
The Ministry also stated that these benefits will only be available to SMEs that have initiated discussions with their respective banks before the cut-off date of March 31, 2025.
It was further noted that some SMEs had failed to approach the banks for these discussions.
In response, the Sri Lanka Banks Association launched a multilingual awareness campaign through national newspapers in Sinhala, Tamil, and English, followed by social media promotions, encouraging SMEs to take advantage of the relief measures.
The Ministry explained that SMEs that engaged with their banks have successfully availed themselves of the concessions, which included interest reductions and extended repayment periods.
Although willful defaulters may still avoid approaching banks, the Bankers’ Association believes that many SMEs will step forward in the coming days to utilize the benefits offered under the relief mechanism. The Association added that its member banks are ready and willing to support such small and medium-sized enterprises.
