Defaulters of small loans offered restructuring option till December 2025

The borrowers with loans below Rs.25 million would be given the option of restructuring until December 2025, President Anura Kumara Dissanayake said. 

According to Dissanayake, the option is made available since about 99 percent of the borrowers have taken loan less that Rs.25 million. 

Dissanayake said those keen on exploring this avenue should inform their respective banks by March 2025, so that the restructuring plans can be drawn up. 

Addressing Parliament yesterday, Dissanayake acknowledged that due to the suspension of the parate execution, the banking system could become unstable.

“They also have people’s deposits. We have to be mindful of the safety of people’s deposits,” he noted. 

Dissanayake pointed out that the impact of the collapse of finance companies was not only felt by the directors or owners but also by the depositors.

“When we take decisions, we have to equally balance the safety of the banking system and protection to small and medium enterprises.”

The suspension of the parate execution, which was to end in December 2024, was extended till March 2025.