The government would not extend the suspension of ‘parate executions’ that was now effective, Deputy Minister of Finance Harshana Suriyapperuma told Parliament yesterday.
Suriyapperuma said so in response to a question raised by Opposition Leader Sajith Premadasa, who asked about the government’s plans regarding a relief package to assist small and medium-scale enterprises (SMEs) struggling to repay loans.
Pointing out that about 263,000 SMEs had closed down, Premadasa asked what action the government would take to address the grievances of these SMEs.
He said that from 01 Jan., 2019, to 01 Dec., 31, 2023, licensed banks had collected Rs. 113.7 billion through 2,263 parate executions. As of 31 Dec., 2024, Rs. 1,380 billion had been recovered from Stage III defaulters.
The government has introduced loan schemes to assist SMEs impacted by the economic crisis. They included capital loans of up to Rs. 10 million, with a six-month grace period and a three-year repayment term at 8% interest, Suriyapperuma said. Additionally, another loan scheme under the consolidated fund aimed to help SMEs that werecurrently paying their loans. That scheme offered loans of up to Rs. 15 million, which must be repaid over ten years with a one-year grace period and a 7% interest rate. For SMEs that had defaulted on their loans, a loan of up to Rs. 5 million is available at 8% interest, with a six-month grace period and a five-year repayment term, Suriyapperuma said.
By Saman Indrajith
