Suspension of Parate executions extended till March 2025

10 December 2024 10:30 am Views - {{hitsCtrl.values.hits}} 2 Bookmark

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Colombo, Dec 10 (Daily Mirror) - The Cabinet has approved an extension of the suspension on 'Parate executions' till March 31 of next year, Cabinet spokesman and Minister Nalinda Jayatissa said.

The previous government had suspended the law on Parate execution, which involves auctioning collateral for defaulted loans by banks, until December 15.

The Cabinet approval followed a proposal by the Finance Minister and President Anura Kumara Dissanayake to extend the suspension and establish a mechanism to address the issue in collaboration with all stakeholders.

Earlier, Sri Lanka's banks, regulators and small and medium-scale enterprises (SMEs) met at the Presidential Secretariat to discuss the challenges of Parate execution (foreclosure) and loan repayment difficulties faced by SMEs, focusing on the financial struggles arising from loan obligations.

Comments - 2

Concerned Citizen Tuesday, 10 December 2024 11:18 AM

Please ensure that all these SMEs have a tax file and that all the VAT and other taxes have been paid or agreed to pay once the businesses are on track. Willful tax defaulters should not be entertained for ANY benefits !

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Ram P Tuesday, 10 December 2024 03:16 PM

Parate execution must stay if the lending institutions are to survive. In the recent past we saw very big loans doled out to rich businessmen without any collaterral/s and the debts were viped out from the Bank books. Even if there were no collaterrals the Banks should have sued them and gone against their assets. Parate execution is an easy way to collect the debts when a collaterral is present as security

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