Loan defaulters push for extended parate suspension

• Sri Lanka United National Businesses Alliance says 10-month suspension is not enough
• Asks for more room to recover losses
• Calls on govt. to step up efforts in creating an environment to get maximum benefit during concessionary period

The loan defaulters, who were recently successful in putting the parate rights on hold, yesterday made a fresh appeal to the authorities, urging them to extend the suspension for three years.

While thanking the authorities for suspending the parate rights of banks until December 15 of this year, the Sri Lanka United National Businesses Alliance (SLUNBA) requested the government to extend the suspension further, so that they have some breathing space to recover the losses incurred thus far.

Addressing a press conference yesterday, SLUNBA Chairperson Tania Abeysundara said that suspending the parate rights for 10 months is only a temporary concession and it is not enough.

“But we do not expect a concession; as a country, we need a permanent solution. This country was not ruined by us but by the politicians and we suffer for that,” she said.

“The Central Bank Governor had created the foundation to make wrong decisions in the banking sector. The Central Bank is ruled as a separate government and it is controlled by separate laws. Because of the unfavourable laws of the country, the businessmen had become fraudsters,” she added.

Speaking on behalf of the small and medium enterprises, Abeysundara called on the government to step up efforts in creating an environment to get the maximum benefit during the concessionary period. 
“We cannot restore our business in 10 months. We need at least three years to restore the place where we fell. 

The collapse of all the businesses in the country was caused by the decisions taken by the Central Bank. Therefore, we request the government, from the president, to extend the suspension of the parate rights of banks at least for three years,” she said.

The Sri Lanka Banks’ Association (SLBA) expressed its deep dissatisfaction in the government suspending the parate execution rights, a decision that was taken without consulting the Central Bank, for the banking and financial sector.

In a statement to the media this week, the SLBA pointed out that the banks use the parate laws as an option of last resort, in order to expedite the debt recovery from the loan defaulters, with a view to protecting the interests of the banking system and depositors, who provide the funds for such loans.

“The banks believe that the reported unilateral intervention by the Cabinet of Ministers is unnecessary and will weaken the strength of the banks in performing their role in supporting the economic revival of the country,” the SLBA said.