Opposition Leader calls on Govt to provide fair solutions to struggling SMEs

Leader of the Opposition Sajith Premadasa has urged the government to immediately provide fair and just solutions to Small and Medium Enterprises (SMEs) and entrepreneurs who are being severely impacted by the re-implementation of the parate execution laws, effective from June 30.

Issuing a special statement today (30), Opposition Leader Premadasa emphasized that with the enforcement of the parate law, many SMEs and entrepreneurs are at risk of having their assets rapidly auctioned off by financial institutions, plunging them into further hardship.

He pointed out that these SMEs contribute over 50% to Sri Lanka’s GDP and provide employment to over four million people. The loss of their assets due to enforced auctions will directly affect national production and negatively impact economic growth, Premadasa noted.

The Opposition Leader further stated that both the previous and current governments have failed to offer sustainable support to SMEs. Instead, they have only temporarily suspended the parate law during elections to gain political advantage.

He emphasized that the collapse of the SME sector due to asset seizures will not only reduce the contribution to the GDP but also increase unemployment and hinder export growth, making the economic situation worse.

The Opposition Leader stated that SME owners had requested not just a temporary suspension of the parate law, but also loan restructuring, waivers of non-performing loans, and interest relief—as many had been affected severely due to events like the Easter Attacks, COVID-19 pandemic, and the economic crisis.

He asserted that the government has a duty to support these entrepreneurs by offering capital assistance, implementing effective debt restructuring, and writing off part of the interest and loan capital, allowing them to recover and continue contributing to the economy.

Premadasa stressed that the government cannot dodge responsibility, as it holds a two-thirds majority in Parliament and executive presidential powers.

Leader of the Opposition Sajith Premadasa called on the government to stop misleading the public and instead take immediate, action-oriented steps, including:

Temporarily suspending the parate execution law

Offering debt restructuring

Providing relief on bad loans and interest payments

Ensuring genuine support to revive struggling businesses

He concluded by urging an end to false negotiations and distractions, and for the government to present concrete, time-bound relief measures without further delay.