Namal urges Govt to protect SMEs ahead of Parate Law deadline

Colombo, June 27 (Daily Mirror) - Parliamentarian Namal Rajapaksa has called on the government to take immediate action to safeguard small and medium enterprises (SMEs) as the implementation of the Parate Law for loan recoveries is set to take effect from July 1.

Under this regulation, banks will be empowered to recover loans from SMEs with outstanding amounts exceeding Rs. 50 million a move Rajapaksa warned could place hundreds of businesses in jeopardy.

In a message published on X (formerly Twitter), the MP urged the government to intervene and introduce relief measures for struggling SMEs, many of which continue to face financial difficulties. He stressed that without timely intervention, the enforcement of this law could lead to widespread business closures, job losses, and additional pressure on the country’s recovering economy.

“With our export market still slow and global economic uncertainty ongoing, SMEs have no option but to turn to the government for relief. If this fails, thousands of livelihoods will be at risk, and many businesses will face closure,” Rajapaksa said.

He also appealed to the Central Bank to reach an understanding with commercial banks and further extend the announced deadline for Parate executions, allowing much-needed breathing space for SMEs trying to survive in a challenging economic environment.