Thursday Mar 26, 2026
Thursday Mar 26, 2026
Thursday, 26 March 2026 00:26 - - {{hitsCtrl.values.hits}}
Opposition Leader
Sajith Premadasa
Opposition Leader Sajith Premadasa has called for the immediate suspension of the parate law and a comprehensive relief package for micro, small and medium-scale enterprises (MSMEs), warning that rising fuel prices and high borrowing costs are pushing the sector towards collapse.
Speaking at a meeting with small- and medium-scale businessmen and entrepreneurs at the Opposition Leader’s Office in Colombo, Premadasa said MSMEs, which contribute around 52% to the country’s economy, are facing severe financial distress due to escalating production costs and supply chain disruptions.
He stressed that nearly 4.5 million MSME businessmen and entrepreneurs depend on the sector for their livelihoods, making it a critical pillar of economic stability.
“If this sector collapses, the country’s economic growth will be seriously affected. The domestic economy will weaken and our national production capacity will decline,” he said.
Premadasa noted that the rapid increase in fuel prices has had a cascading impact on production cycles and demand and supply chains. With the rising cost of capital further compounding pressures, many entrepreneurs have become “helpless,” he said, urging the Government to intervene decisively.
Calling for immediate action, the Opposition Leader demanded that the implementation of the parate law, which allows banks to auction properties of loan defaulters without lengthy Court procedures, be halted. He insisted that enforcing the law under current economic conditions would cripple struggling businesses rather than help revive them.
He also called for a structured debt restructuring mechanism for affected businesses, alongside direct financial relief from available Treasury funds.
“Entrepreneurs should be given support and strength. If the Government can collect trillions in revenue, then it must also allocate funds to protect those who generate economic activity,” he said.
Premadasa further urged the Government to introduce a targeted economic revival package for MSMEs, highlighting that rising raw material costs are being passed down the supply chain. If industrialists transfer these increased costs to consumers, businesses risk losing competitiveness, he warned.
He expressed concern that exporters are also under strain, noting delays and limitations in VAT-related relief mechanisms. According to him, tax burdens on businesses must be rationalised to prevent further erosion of profitability. “If taxes continue to rise without corresponding relief, businesses will collapse,” he cautioned.
The Opposition Leader also warned of broader structural consequences, including the relocation of industries and capital flight to other countries. He cited the sugar industry as one of the sectors already facing serious difficulties and said that continued policy pressure could accelerate industrial decline.
