Government to compile detailed SME loan report to plan relief measures

The government has planned to compile a detailed report on loans taken by Small and Medium-sized Enterprises (SMEs) across the country to help create relief measures for the businesses struggling with debt.

In a recent meeting at the Presidential Secretariat, officials and financial sector stakeholders discussed the financial challenges SMEs face with loan repayments, particularly as the temporary suspension of debt recovery under the Parate law is set to end on December 15.

The discussion was led by Senior Additional Secretary to the President for Finance and Economic Affairs, G. N. R. D. Aponsu with participation from the Ministry of Finance, the Central Bank of Sri Lanka and the Sri Lanka
Banks’ Association.

“Attendees examined ways for the banking sector to provide additional support to SMEs and boost productivity in the economy. During the discussions, it was also decided to compile a comprehensive report on the loans taken by SMEs from banks. This report will serve as a basis for designing future relief measures,” the Presidential Media Division said in a statement.

Currently, debt recovery processes under the Parate law, which allow banks to seize assets to recover overdue loans, have been temporarily suspended for SMEs.

With this suspension deadline approaching, the PMD stated that the officials evaluated several strategies to extend support to struggling businesses.

Additionally, the Central Bank of Sri Lanka and commercial banks have already began assessing the requirements to possibly extend the temporary suspension of debt recovery under the Parate law, according to the PMD.
This is in aim to make sure that the SMEs receive the necessary support to stay afloat in the current
economic climate

By Nuzla Rizkiya

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