CBSL Circular on ‘Parate’ law suspension faces backlash from MSME Chamber

The MSME Chamber of Sri Lanka has called for the immediate removal of the circular issued by the Central Bank of Sri Lanka (CBSL), which states that any suspension of ‘Parate’ law execution will not take place beyond 31 March 2025.

Speaking at a press briefing, Media Secretary of the MSME Chamber of Sri Lanka Susantha Liyanaarachchi emphasized the need for the CBSL to issue a new circular pertaining to the recent statement made by the Deputy Minister of Finance.

Commenting further, Liyanaarachchi said: “The deputy minister of finance explained to the country’s banks what to do. His statement said that either the banks have to completely remove the interest or focus on a long-term debt repayment. He also instructed that no action should be taken if the defaulters have filed lawsuits. So, they must know that this must be activated before the 1st of January next year.”

“The Governor of the Central Bank released a circular on the 20th of December, stating that the Sri Lanka Bank Association was of the view that any suspension of Parate execution will not be beyond the 31st of March 2025. How do they have the right to say these things? The governor cannot just release circulars according to what these associations say”, he added. 

“However, if the Central Bank Governor is thinking of pulling tricks like in the previous government, he will not be able to do so now. Therefore, we request the repeal of the circular that was issued on the 20th of December and release a circular according to the statement made by the Deputy Minister of Finance. If it is not be done, we will predict what will happen next to the banks next year”, he stressed.