Colombo, June 13 — The National People’s Power (NPP) Government has rolled out a comprehensive relief programme targeting small and medium-scale enterprises (SMEs) affected by the Parate Law, Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma announced yesterday.
Speaking at a special media briefing held at the Department of Government Information, Dr. Suriyapperuma said the relief initiative, which commenced in December 2024, aims to support SMEs that faced financial distress due to the application of the Parate Law.
“With the expiration of the Parate Law in December 2024, a one-year extension was granted, during which the Government introduced several structured relief mechanisms for struggling businesses,” the Deputy Minister said.
He outlined a tiered support programme based on the size of the loan:
- Businesses with loans under Rs. 25 million were allowed to negotiate with banks before March 31, and if an agreement was reached by June 15, they were given a 12-month repayment period ending December 31, 2025.
- Businesses with loans between Rs. 25 million and Rs. 50 million were granted a similar negotiation window. Those who secured agreements before June 15 were given time until September 30, 2025 to settle outstanding amounts.
- Enterprises with loans over Rs. 50 million were provided a grace period until June 30 to reach settlements and begin repayments.
Additionally, Dr. Suriyapperuma noted that agreements with the banking sector include interest waivers:
- For loans under Rs. 10 million, 65% of the interest may be waived if the loan is settled within six months.
- A 40% interest waiver applies if the repayment is made within a five-year period.
“These measures are aimed at ensuring the survival of SMEs, which form the backbone of the economy, while maintaining financial discipline through structured negotiations with banks,” he added.
The Government has also instructed banks to provide further guidance and flexibility to eligible borrowers under this programme.
The relief package marks a significant intervention in post-Parate Law recovery efforts, with the Government pledging continued support for the SME sector in the coming months.
