Sri Lanka Extends Suspension of Parata Law

This extension is part of the Government of Sri Lanka's ongoing commitment to supporting the revival of SMEs, which are vital to the country's economy. The announcement outlines several key measures to assist businesses that have taken loans. SMEs with loans of less than Rs. 25 million are encouraged to discuss relief options with their respective banks by March 31, 2025.

For those SMEs that have loans between Rs. 25 million and Rs. 50 million, the government has granted an extension until September 30, 2025, to receive the relief. Meanwhile, businesses with loans exceeding Rs. 50 million will be eligible for relief until June 30, 2025.

It is important to note that these benefits will only apply to SMEs that initiate discussions with their banks before March 31, 2025. The Ministry has emphasized that timely engagement with financial institutions is crucial for receiving the support intended to help businesses navigate challenging economic conditions.

This decision reflects the government's recognition of the critical role small and medium enterprises play in Sri Lanka's economic recovery and growth.