The Hon. Sajith Premadasa - Leader of the Opposition
Sajith Premadasa raised concerns over the unresolved difficulties facing MSMEs and the wider industrial sector, particularly after the expiry of the suspension of banks’ parate execution powers and the threat of new US reciprocal tariffs. He asked whether the Government would extend the parate suspension, table data and a Central Bank roadmap on parate execution, and introduce measures such as affordable working capital, interest relief, and loan restructuring for distressed and blacklisted businesses. He also sought clarification on the Government’s response to the proposed 44 per cent US tariff on Sri Lankan exports, including efforts to secure alternative market support such as an expanded Indian apparel quota, and called for an All-Party Conference to address the issue.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Mr. Deputy Speaker, no Government, including this one, has provided a lasting solution to the issues faced by MSMEs in our industrial sector. Further, due to reciprocal tariffs imposed by the United States on many countries including Sri Lanka, not only MSMEs but the entire industrial sector faces a severe crisis. Urgent action is essential to protect our industrialists. I pose the following:
¶ 02 1. The suspension of banks’ parate execution powers under the Recovery of Loans by Banks (Special Provisions) Act, No. 4 of 1990, ended on 31 March 2025. Will the Government extend this suspension further? If so, for how long?
¶ 03 2. As recommended by COPE on 07 May 2024, has the Central Bank prepared a roadmap on the mechanism and objectives of parate execution? If so, will it be presented to Parliament?
¶ 04 3. From 2019 to 2023, under parate, how many MSMEs, large enterprises and individual entrepreneurs had properties auctioned? Will you table a report with unpaid loan amounts?
¶ 05 4. Beyond suspension of parate powers, has the Government focused on providing affordable working capital to revive permanently closed, temporarily closed and distressed MSMEs? Will accrued interest be partly written off to address NPLs and compounded interest?
¶ 06 5. Many MSMEs have become defaulters and blacklisted. What steps has the Government taken with state and private banks to negotiate and restructure these loans?
¶ 07 Also, US reciprocal tariffs reportedly stem from a large US-Sri Lanka trade deficit. President Trump announced a “Liberation Day” and a 44% reciprocal tariff as we impose 88% duties on US exports. This is serious and will harm our exports. We requested PM Modi to expand India’s eight-million-piece apparel quota to help our exporters. What steps is the Government taking? We have heard of delegations and discussions, but 9 April is critical. If imposed, it could trigger economic downturn. What is the Government’s response? Our Opposition has called for an All-Party Conference to find solutions.
Provenance
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- Hansard, Tuesday, 8 April 2025 ·No. 1747715041076408 ·English daily/uncorrected Hansard
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Cite as: The Hon. Sajith Premadasa - Leader of the Opposition. 10th Parliament, Parliament of Sri Lanka. Hansard, 8 April 2025. No. 1747715041076408. Politick, https://staging.politick.io/lk/speeches/15118