Loan defaulters seek three-year extension on parate rights suspension
March 14, Colombo (LNW): Following the recent suspension of parate rights, loan defaulters have petitioned authorities for a three-year extension to the moratorium, citing the need for additional time to recover from financial losses.
The Sri Lanka United National Businesses Alliance (SLUNBA) expressed gratitude for the temporary suspension of parate rights until December 15 of this year but emphasised the necessity for an extended relief period.
These sentiments were delivered during a press conference led by SLUNBA Chairperson Tania Abeysundara.
Abeysundara underscored that the 10-month suspension represents a short-term solution, asserting the need for a permanent resolution to address economic challenges.
She attributed business setbacks not to the actions of entrepreneurs but to unfavorable governmental policies, particularly those governing the banking sector.
Highlighting the role of the Central Bank in exacerbating economic woes, Abeysundara called for comprehensive measures to facilitate business recovery, stressing the importance of a supportive environment during the concessionary period.
Representing small and medium enterprises, Abeysundara urged the government to extend the suspension of parate rights for at least three years, providing businesses with adequate time to recuperate.
In contrast, the Sri Lanka Banks’ Association (SLBA) expressed discontent over the unilateral decision to suspend parate execution rights, emphasising the absence of consultation with the Central Bank, a key stakeholder in the banking and financial sector.
In a media statement, the SLBA defended the use of parate laws as a last-resort option for expediting debt recovery, aimed at safeguarding the stability of the banking system and protecting depositor interests.
The SLBA cautioned against unilateral interventions that could undermine the banking sector’s ability to contribute to the country’s economic recovery, advocating for collaborative measures to address systemic challenges.
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