The government will hold discussions with stakeholders to resolve the issues surrounding the reimplementation of the Parate law, Deputy Minister of Economic Development Dr. Anil Jayantha Fernando has stated.
The Deputy Minister noted that discussions will take place in the coming days.
The Parate law, which grants banks the authority to seize mortgaged property in the event of loan defaults, was re-enforced as of midnight yesterday (30).
On a previous occasion, the incumbent government suspended the enforcement of the law for a period of three months, while former President Ranil Wickremesinghe suspended it for six months prior to that.
However, small and medium-scale entrepreneurs and business owners have raised concerns that reinstating the law could lead to the collapse of many local businesses and industries.
As a result, the business community has requested the government to extend the moratorium on the implementation of the Parate law for another year.
When contacted by “Ada Derana” regarding the matter, Deputy Minister Anil Jayantha stated that the government is working towards providing a sustainable solution to the issue.
He added that discussions with banks and other relevant parties are expected to take place soon to reach an effective solution.
