President Ranil Wickremesinghe stated that it is not feasible to indefinitely maintain the temporarily suspended Parate law. Consequently, a new bill will be introduced to address bankrupt businesses.
The President also mentioned that the proposed bill includes provisions for restructuring loans taken by Micro, Small and Medium Enterprises (MSME). Additionally, a new institution named “Enterprise Sri Lanka” will be established to provide necessary support and assistance to Micro, Small and Medium-Scale Entrepreneurs.
President Wickremesinghe made these observations at the “Critical initiative to revitalize Sri Lanka’s micro, small and medium scale economy” event, organized by the Ceylon Federation of MSME, at the BMICH on Friday. The President stated that a copy of the new bill, which has already been drafted, requested that micro, small and medium enterprises submit their views and suggestions on the bill.
“During the recent past, the country’s economy faced a severe collapse, impacting all businesses, particularly small enterprises and the banking system was also at risk upon taking office we negotiated with the International Monetary Fund (IMF), and worked towards economic recovery which was a success.”
Private creditors also agreed to address the framework once we had an agreement with the official creditors.
“An opportunity could be arranged to discuss the issues faced by micro, small, and medium enterprises with the IMF delegation scheduled to visit Sri Lanka at the end of this month. “There have been many questions from you, the Micro, Small and Medium-scale Entrepreneurs, about the recent challenges. Next year, we aim to address all inefficiencies. Once the economy is stabilized, we will be able to make further progress. However, it is crucial to protect the banking system. We had to inject capital into government banks, such as the Bank of Ceylon and the People’s Bank, as well as private banks. Safeguarding the banking system is essential for our continued advancement. Currently, we have suspended the Parate law, but it cannot remain suspended indefinitely. Therefore, we are working on a new Insolvency Bill, which we have now presented. Please review it, as it includes provisions for restructuring. In addition to safeguarding our banking system and supporting micro, small, and medium enterprises, we are also advancing large-scale businesses.”
“We have successfully managed all public corporations using our resources. This has led to fuel prices fluctuating in line with global trends. There is potential to further reduce fuel prices by cutting certain costs, and the same applies to energy prices. We should also focus on boosting exports. To support this, we are establishing a new organization called ‘Enterprise Sri Lanka,’ which will provide the necessary assistance. Additionally, we are setting up a National Bank for Development,” President Wickremesinghe said.
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