Sajith calls for Govt. program to provide affordable capital to SMEs

• Stresses temporary suspension of parate executions is insufficient to develop struggling businesses 
• Says SMEs must be provided with working capital and affordable capital for business growth 
• Urges Govt. to amend legislation to implement decision to temporarily halt parate executions 

Opposition Leader Sajith Premadasa emphasised on Friday the necessity for the Government to enact a program aimed at granting Small and Medium Enterprises (SMEs) access to cost-effective working capital, thus fostering the growth of their currently struggling businesses.

Addressing the Parliament regarding the delay in executing the cabinet decision to temporarily suspend parate executions carried out by banks and financial institutions, Premadasa emphasised the importance of implementing such a program within the designated timeframe. 

“Delaying parate executions alone is insufficient. SMEs should have access to the working capital and affordable financing required for their business growth. 

The Government must implement a comprehensive program to support entrepreneurs,” he emphasised. He warned that failing to do so would result in the temporary pause on parate executions resembling the loan recovery moratorium, ultimately causing headaches for entrepreneurs.

Premadasa highlighted that while the cabinet agreed to temporarily suspend parate executions, there is a need to amend the relevant act to facilitate its implementation. He urged the Government to expedite the process of amending the act and emphasised the importance of promptly implementing the proposed measures.

Furthermore, Premadasa underscored the significant contribution of SMEs to the economy, providing 4.5 million jobs and constituting 52% of the GDP. He stressed the responsibility of supporting SMEs and suggested adding the amendment to the next Parliament schedule as a means of bolstering support for these enterprises.