President tells MSMEs direct meeting with IMF to share grievances could be facilitated

• Urges to carry out self-review and list down common concerns
• Says new Insolvency Bill in the works to address issues of bankrupt businesses

President speaking at the event at BMICH

• By Nuzla Rizkiya 

 As Sri Lanka’s Small and Medium Enterprise sector grapples with significant challenges impeding their progress, President Ranil Wickremesinghe has offered to facilitate direct consultations between these businesses and the International Monetary Fund (IMF).

An IMF delegation is scheduled to visit Sri Lanka at the end of this month, and an opportunity could be arranged to discuss the issues faced by Micro, Small, and Medium Enterprises, the President told a fully packed audience at the BMICH on Friday. 

“In the recent past, the country’s economy faced a severe collapse, impacting all businesses, particularly small enterprises, and causing widespread losses. There have been many questions from you (the MSMEs) about the recent challenges. We need to find solutions based on this context,” Wickremesinghe told a gathering of over 500 MSMEs who for the first time were allowed to directly share with the President their grievances.

The President advised the group as a first step to review and discuss among themselves and list down concerns. 
“If you are interested, I can arrange consultations with representatives from the International Monetary Fund, who will visit Sri Lanka at the end of this month,” he said.

At the event, he went on to touch on the highly debated parate execution, stressing it cannot be suspended indefinitely. Instead, a new Bill will come to address the issues of bankrupt SMEs and businesses in the country. 
“We are working on a new Insolvency Bill, which we have now presented and made available for discussion. Discuss these matters, the legal remedies, the additional concessions required beyond those outlined in the draft, and share your concerns with the government. But before doing so, let’s consult with the IMF,” Wickremesinghe said. 

The Cabinet of Ministers last March approved the amendment of the Recovery of Loans by Banks (Special Provisions, Amended) Act to suspend the parate execution rights of banks until December 15 2024.
The suspension was an effort to provide breathing space to MSMEs and a temporary relief to creditors, according to the government. 

Under the Parate Execution Law, banks and financial institutions were legally allowed to foreclose on properties that have been mortgaged as security for loans, without having to go through a lengthy court process in case a borrower defaults on a loan.