Sajith Questions Govt’s Plan for MSMEs Amid Reactivation of Parate Law

Mr. Sajith Premadasa questioned whether the government has a clear and sustainable plan to safeguard the vital MSME sector, which he said continues to face severe challenges. The Parate Law, which allows banks to auction properties of loan defaulters without court proceedings, had previously been suspended to provide temporary relief to MSMEs. However, with the suspension set to expire on March 31, 2025, Premadasa urged the government to clarify its stance on whether further delays in enforcing the law would be considered.

Highlighting the sector’s importance to the country’s industrial base, Premadasa pointed out that MSMEs are grappling with unique problems, including financial instability. He emphasized the need for lasting solutions instead of short-term measures.

Premadasa also referenced a recent census revealing that 263,000 MSMEs have collapsed, underscoring the broader economic crisis faced by the sector. Many MSMEs, he stated, have been blacklisted due to loan defaults, compounding their financial difficulties. He urged the government to take action by providing affordable working capital and restructuring non-performing loans to help revive both temporarily and permanently closed businesses.

The Opposition Leader's remarks come at a time when MSMEs are crucial to the economic recovery, and questions about government intervention and policy effectiveness remain at the forefront of national discourse.