Opposition Leader Sajith Premadasa has warned that the reactivation of the Parate Law poses a severe risk to Sri Lanka’s MSME sector. With over four million jobs and 50% of GDP on the line, Premadasa urges the government to act immediately to protect small business owners from forced asset seizures and economic collapse.
Opposition Leader Sajith Premadasa has warned that Sri Lanka’s MSME sector, a key driver of the economy is now under severe threat due to the reimplementation of the Parate Law, which takes effect from midnight today (June 30).
Calling for urgent government intervention, Premadasa urged authorities to introduce sustainable solutions to protect micro, small, and medium-scale entrepreneurs, many of whom are currently facing financial hardship and uncertainty.
The Parate Law, which allows banks to expedite the auctioning of assets belonging to borrowers who default on loans, is now raising fears across the business community. Premadasa said the move could have devastating consequences.
“This poses a direct threat to thousands of business owners,” he told Parliament. “Many of them now face the risk of losing their homes, land, and life’s work. The level of distress in the MSME sector is extremely high.”
Premadasa highlighted the critical role MSMEs play in Sri Lanka’s economy, noting they contribute over 50% of the national GDP and employ more than four million people. He warned that allowing aggressive asset seizures could cripple the sector and reverse the country’s fragile economic recovery.
“The enforcement of the Parate Law without safeguards will wipe out an essential part of our economy. This will impact not just entrepreneurs but the entire nation,” he said, urging the government to rethink its approach.
With the country still reeling from economic instability, Premadasa’s statement adds pressure on policymakers to balance debt recovery with economic survival.
Your father spoke about just a shelter for the poor while you promoting 2% of the population filthy rich owned majority of the commercial land living by the side of politicians. While 2.8 million out of 8.5 million workforce is migrant workers were contributing US 4 billion to the economy is treated 2nd class citizens.