Leader of the Opposition Sajith Premadasa alleges that the decision taken by the government to temporarily halt the ‘Parate Law’ is not being implemented properly.
Thus, Premadasa mentioned that he intends to request the President to take actions to communicate the relevant decision to the banks.
Commenting regarding the matter, State Minister of Finance Ranjith Siyambalapitiya said that even though the Parate Law has been temporarily suspended, banks have not been deprived of their right to expropriate the property.
Earlier this week, the Cabinet of Ministers green-lighted a proposal made by the President to suspend all Parate Executions in a bid to protect small- and medium-scale entrepreneurs (SMEs) that were severely affected by the economic woes over the past 3 years.
As per the Cabinet’s decision, the banks’ practice of acquiring properties of whose loans are yet to be paid off are suspended until 15 December 2024 and Section 4 of the Recovery of Loans by Banks (Special Provisions) Act No. 4 of 1990 will be amended to facilitate the necessary legal provisions.
