President Ranil Wickremesinghe has announced that a new bill will be introduced to address business bankruptcies, as it is not feasible to indefinitely maintain the temporarily suspended Parate law. The bill will include provisions for restructuring loans for Micro, Small, and Medium Enterprises (MSMEs) and establish a new institution, “Enterprise Sri Lanka,” to support these businesses.
Speaking at the “Critical Initiative to Revitalize Sri Lanka’s Micro, Small, and Medium-Scale Economy” event organized by the Ceylon Federation of MSME at BMICH, the President urged MSMEs to provide feedback on the draft bill.
Wickremesinghe highlighted that the recent economic collapse severely impacted small enterprises and the banking sector. Efforts to negotiate with the IMF and other creditors have led to a framework for economic recovery, which has been successful. He noted that while the Parate law has been temporarily suspended, it cannot remain so indefinitely. The new Insolvency Bill aims to address these issues and support the stabilization of both MSMEs and large-scale businesses.