Suspension of Parate executions extended till March 2025

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.