Deputy Minister of Finance and Planning

Dr Harshana Suriyapperuma

• A key meeting chaired by Deputy Minister of Finance and Planning, Dr. Harshana Suriyapperuma, with representatives of MSMEs, discusses several challenges and remedial measures.

The government yesterday informed micro, small and medium enterprises and entrepreneurs (MSMEs) that the ongoing parate action freeze will be extended from the original scheduled expiration on December 15.

The assurance was given during a meeting chaired by Deputy Minister of Finance and Planning, Dr Harshana Suriyapperuma, with representatives of MSMEs. The government will present parliamentary legislation to extend this suspension for a further six months.

This discussion was part of an effort to bring together MSME lobby groups, the Ceylon MSME Federation and the National Trade Protection Council.

The Ceylon MSME Federation said the planned move would bring much-needed relief to micro, small and medium enterprises (MSMEs). The necessary information will be obtained from the Central Bank and further discussions are expected to take place early next week.

The Deputy Minister expressed hope that the extension will benefit more MSMEs.

Ceylon MSME Federation President Mahendra Perera said the possibility of providing relief to businesses through debt restructuring at lower interest rates was also discussed to help businesses. entrepreneurs to manage their loans more efficiently.

The meeting also focused on finding solutions for businesses that have fallen into non-performing loan (NPL) status due to the impacts of the COVID-19 pandemic and the Easter Sunday attacks. Discussions took place on how to address these challenges.

It was discussed that properties and businesses that were taken over by banks through auctions in the last five years (from 2019 to 2024) should be returned to their original owners and that a process of Debt restructuring should be put in place to facilitate the repayment of these loans. . The Central Bank and the Ministry of Finance should collaborate to establish this process.

Creating a prosperous and sustainable entrepreneurial environment in Sri Lanka was discussed, with the aim of fostering long-term business growth.

It was suggested to create a data system to better capture and address the challenges faced by businesses, including entrepreneurs and MSMEs.

To protect domestic MSMEs, it was proposed that registered trade unions from each sector should be included, as well as representatives from the Central Bank of Sri Lanka, the Ministry of Industries and all relevant banks. A committee should be formed to discuss and resolve the issues faced by MSMEs. Participants accepted this proposal and expressed their support.

The officials and MSME representatives also discussed taxes and tax arrears for domestic MSMEs, including removal of penalties and providing avenues for payment of arrears, including EPF/ETF contributions.