Anti-parate activists renew call for SME support

Representatives from various sectors came together yet again this week to call on the Government to address the pressing issues affecting small and medium enterprises (SMEs), with parate execution, the impact of new tax regime and higher electricity cost.

Speaking to the media anti-parate activists claimed how the temporary suspension of the parate law request made by them was misinterpreted by the Central Bank Governor Dr. Nandalal Weerasinghe and the current challenges faced by SMEs, along with proposed solutions to overcome these obstacles.

President’s Counsel Mayura Gunawansa, alongside Tania Abeysundara, Susantha Liyanaarachchi, Mahendran Perera, Sashika de Silva, Suresh Raghavan, and S. Thumilan, were among the business activists at the media briefing held on Thursday at the BMICH.

The speakers voiced their concerns regarding aggressive execution of parate law by banks, highlighting its impact on SMEs and calling for a more balanced approach on enforcement. They also addressed the repercussions of the new high tax regime, higher electricity tariff etc. stressing the adverse effects on small and medium-scale industries and the challenges they currently face.

“The implementation of new tax policies is severely impacting entrepreneurs, who feel that they are being unfairly burdened with additional taxes on top of existing ones, leading to a significant drain on their financial resources to fund Government operations,” Abeysundara said.

Despite the collection of taxes, she said there is a lack of meaningful investment, with funds often being used to maintain inefficient Government projects. “In the apparel industry, which I represent, a staggering 59% of enterprises have collapsed as a result,” Abeysundara pointed out.

Gunawansa explained that their plea to the Central Bank Governor was misinterpreted at public fora.

“What we suggested was a more lenient approach to enforcing laws, allowing SMEs to continue operating without undue pressure until they can navigate the challenges they face. However, the Central Bank Governor’s statements contradict this, claiming that requests to abolish the laws were made when in fact discussions centred on amending existing legislation,” he pointed out.

He also opined that the Central Bank Governor’s assertion of protecting depositors is unfounded, pointing out that banks rely on entrepreneurship for their business operations to continue.

“Failure to protect key contributors to the economy, as SMEs account for 52% of GDP and 45% of employment, could have dire consequences, potentially leading to economic collapse. Despite this, the Central Bank Governor appears to be offering differing interpretations,” Gunawansa claimed.

Throughout the conference, participants engaged in constructive dialogue, exchanging ideas and proposing actionable steps to alleviate the burdens faced by SMEs. 

The briefing served as a platform for stakeholders to collectively opine their concerns and work towards finding solutions to support the growth and sustainability of SMEs in these trying times.

The stakeholders remained hopeful for positive outcomes that will create a conducive environment for entrepreneurship and economic prosperity in the country.