Sat, 13 Apr 2024 Today's Paper

Central Bank urges legal reforms for stronger credit recovery

19 February 2024 05:15 am - 30     - {{hitsCtrl.values.hits}}

A A A

Dr. Nandalal Weerasinghe

  • Says shorter credit recovery cycle critical to ensure business continuity 
  • Calls for further strengthening of Parate execution laws
  • Asserts time taken to recover assets must be further minimised

By Nishel Fernando

With a view to ensure continuity of businesses  and job security of employees,  the Central Bank (CB) has called for legal reforms to  further strengthen Sri Lanka’s Parate execution law and other credit recovery laws in order to shorten the credit recovery cycle on par with global practices .

Instead of suspending Parate Rights for few borrowers who are in the cover of SMEs, Central Bank (CB) Governor Dr. Nandalal Weerasinghe asserted that further strengthening of the Parate execution law along with other credit recovery laws stands to benefit the country’s MSME sector with greater access to credit.

“..This (Parate execution law) has to be strengthened to further minimise the time taken to recover the asset. So that banks and the businesses can survive and continue while the borrower who is not viable can basically transfer that asset to someone who can run the business. We don’t need to protect the borrower who is not liable, but the enterprise or the business,” Central Bank Governor said.

He shared these remarks delivering the keynote speech at a recent webinar titled “Can Suspending Parate Rights help SME recovery?” organised by our sister paper – Daily FT, ACCA and The International Chamber of Commerce Sri Lanka Chapter together with Colombo MBA Association, CIMA, AAT, and CA Sri Lanka.

The Governor said that 3-6 month credit recovery would enable to make this transformation. 

“Within three months, they acquire the property and let someone else to take the property and then borrow it out. So this is more efficient and will help the economy, help SMEs, and improve access to finance,” he elaborated.

Prior to this, Dr. Weerasinghe highlighted that it’s essential to understand the difference between the SMEs and anti-parate activists who are largely made up of willful defaulters.

Despite pressures from various quarters of the business community, especially the SME segment, the Central Bank continues to resist calls to amend banks’ Parate execution rights.


Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

  Comments - 30

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka
  • Sambo Monday, 19 February 2024 07:41 AM

    The central bank is another corrupt entity in our country. How come the central bank staff could increase their own salaries and pensions to their own will. Do you think there are no other educated people in this country. They could hardly speak a proper 10 words of English bur they claim to be the most educated people in this country. What a country this has become.

    Mohamed Ifaz Inamdeen Monday, 19 February 2024 06:17 PM

    You're right, Sambo. Central bank goons are living a super luxury life by breaking the neck of ordinary citizens of this country. They're clueless of improving the economy. How did Nandalal purchase about 250 million USD from local market by spending billions of LKR in January 2024?? That billions of LKR belong to whom??? It's the money the government unjustly deprived from ordinary citizens by increasing tax, vat, etc...

    Premalal Perera Monday, 19 February 2024 09:23 AM

    When a bank carries out a paratë execution, a hundred more investors are discouraged. As paratë takes root investors will disappear. Very soon it will be the banks and the big businesses who will survive. May that is the CB goal.

    Mahila Monday, 19 February 2024 10:18 AM

    On the contrary, Investor Moral and Confidence would be boosted and encouraged!! Greater, Larger Investments would be Forthcoming!!? The Investors would be encouraged and be Confident that their Money or investments are Secure and Retrievable in realistic times and Terms, if and when so desired!? NOT, other way around as expressed!?

    Kandiah Balendran Monday, 19 February 2024 09:25 AM

    Central Bank has given themselves massive increments. Deputy governor salary has been increased by over 7 lakhs per month. Peon gets paid over 190,000 per month.

    Abolish new Employees Pension Schemes. Monday, 19 February 2024 10:18 AM

    Abolish Pension scheme for new employees. Many countries have already started or starting this Eventually, within 30 years time the next generations will benefit with less taxes.

    Sivalingam Monday, 19 February 2024 09:25 AM

    Mahendran Bond scammer, Nandalal EPF scammer.

    Mahila Monday, 19 February 2024 01:34 PM

    That's a Load of Oxen Excreta!!??

    Shalani Tharaka Monday, 19 February 2024 09:26 AM

    Nandalal is worse than Cabraal.

    AJ Monday, 19 February 2024 12:12 PM

    Public emphasising to head of central bank to enforce the law against scoundrels who Looted central bank in 2016,rajapaksha family who plundered state coffers ,while pushing country towards bankruptcy,without misleading the public ,otherwise public consider you are not a responsible intellectual but a political lackey of politicians

    Mahila Monday, 19 February 2024 01:36 PM

    The Governor CBSL has no Mandate!! That should be AG!!?? Justice, 3rd Pillar of Democracy!??

    United National Peaceful People's Power Monday, 19 February 2024 12:15 PM

    All these current political leaders and officials will vanish before next ......?

    Jude Monday, 19 February 2024 12:20 PM

    Nanda do us a favour, go back to Australia. You was the Deputy governor at the time when Governor Mahendran looted the CB. I bet moment the NPP wins you're gonna run back to Australia, otherwise you'll be prosecuted for your part in the CB Bond scam.

    Dee Monday, 19 February 2024 01:17 PM

    Would love to see their fair lady lawyer prosecute one single person for all the allegations they make on stage! Keep dreaming Che!

    Senpera Monday, 19 February 2024 03:06 PM

    The 3% party won't win anything

    Sam Silva Monday, 19 February 2024 06:25 PM

    Hey Jude, Be careful what you ask for.

    Jega Monday, 19 February 2024 01:26 PM

    Whatever it may be, the parate laws of Sri Lanka should be on par with the developed countries. It should support the genuine SME owners who finds it difficult to pursue their businesses due to unforeseen circumstances but not the culprits. The governor is not only correct about the parate laws but he is one of the saviors who saved the country from plunging into a great disaster. Don't be ungrateful to a man whose timely actions helped us to come out of of this great mess created by a president who came to power with the 6.9 million votes of fools of this country. If you cannot appreciate the actions of a wise man at least be silent, don't hurt him.

    Mahila Monday, 19 February 2024 01:49 PM

    To: 'Abolish new Employees Pension Schemes' If you are not already Aware, New Employees of the Public Service “DO NOT ENJOY PENSION SCHEME, SINCE 1970”, with Prolific Thanks to People’s darling PM, Sirimavo and her able Lieutenant and Finance Minister, Trade Unionist and Trotskyite Dr. Nanayakkarapathirage Martin Perera!? So what is there to abolish, something already abolished by above 2 individuals, 50 years ago!!! Get to know Facts!? Blind leading the Blind!!??

    Have Courts to deal with Corruption Monday, 19 February 2024 02:13 PM

    Fasters way to get your needed funds is to start getting back the money from corruption over years. Liquidating their assets

    Chin Monday, 19 February 2024 02:44 PM

    They are even don't know country will bankrupt until it happen. Idiots paying highly

    dana Monday, 19 February 2024 03:19 PM

    Someone said you were deputy under Mahendran, so you know most about the scam more than many, why you behaving like nothing happened, can a person who loves his mother country and with a spine behave like you

    Mahila Tuesday, 20 February 2024 06:04 AM

    Sri Lankans are GOOD at tying up HANDS AND LEGS AND DESIRE VICTIM TO JUMP UP AND DOWN!!???

    dana Monday, 19 February 2024 03:19 PM

    Someone said you were deputy under Mahendran, so you know most about the scam more than many, why you behaving like nothing happened, can a person who loves his mother country and with a spine behave like you

    Mahila Tuesday, 20 February 2024 06:01 AM

    YES, He was Deputy Governor (DG) under Cabal Cabraal, Professor W D Luxman, when WDL WAS EXPERIMENTING, “NEW ECONOMIC THEORY” – expense of Sri Lankan Public and "The Cabal", Cabraal was selling ‘FAMILY SILVER’ (Gold, Sterling

    KD Monday, 19 February 2024 03:52 PM

    Damns crooks. When the people of this country are suffering, they give themselves huge salary increments.

    Amara Monday, 19 February 2024 04:43 PM

    Leagal reforms on unfair salary hikes ? It's a joke ha :D

    Terrence K Monday, 19 February 2024 08:07 PM

    @Premalal Perera - Don't talk rubbish about Parate execution. Parate execution will never root out genuine grass root level customers and will never shoo away investors who have a vision of building their enterprises. Only customers who have a motive of swindling Banks or SME Units by not repaying the loans will think twice before they try to circumvent the process of recovery. The past shows that some of the SME Loans have gone into the Past Due/Bad debts section mainly because the end use of funds from the loans have not be channelled for the purpose it was first intended. Parate execution has come to the rescue of recovery. Sometimes repayment is not forthcoming due to instigation by politicians/loan customers who are appearing in the Credit Bureau listing and could not obtain any type of credit. If not for the Banking Act of 1988 when Parate Execution was implemented it would have been hay day for defaulters, hassle for the process of recovery. Long Live Parate Execution!!!!!!

    Mahila Monday, 19 February 2024 09:04 PM

    To: Abolish new Employees Pension Schemes If you are not already Aware, New Employees of the Public Service “DO NOT ENJOY PENSION SCHEME, SINCE 1970”, with Prolific Thanks to People’s darling PM, Sirimavo and her able Lieutenant and Finance Minister, Trade Unionist and Trotskyite Dr. Nanayakkarapathirage Martin Perera!? So what is there to abolish, something already abolished by above 2 individuals, 50 years ago!!! Get your Facts Right!? Blind leading the Blind!!??

    UAli Tuesday, 20 February 2024 06:55 AM

    I doubt the pension of felon Cabraal, who was punished by supreme courts of Sri Lanka for destroying country’s economy connivance with rajapakshas,was increased more than others heads, after elevating his position, equal to cabinet level is still paying, if do so NW would have to answer in near future

    Abd Tuesday, 20 February 2024 07:05 AM

    I well remember,when near end of sirima B ‘s @mahila,unpopular government in 1977, she brought in ,infamous pension act for parliamentarians , that was seconded by both government and then opposition, such a dirty bill, which paying pension to all scoundrels who have been leading country to bankruptcy


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment





Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka