On Apr. 8, 2025, SRI GVT said relief period is extended until Dec. 31, 2025 for SMEs with borrowings below LKR 25mn, provided they approached banks by Mar. 31, 2025.
SMEs with borrowings between LKR 25mn and 50mn have until Sep. 30, 2025 to access relief, while those with loans above LKR 50mn have until Jun. 30, 2025.
SMEs that had initiated discussions with banks before Mar. 31, 2025 are eligible.
SRI GVT encourages SMEs to approach banks if they have not; those that engaged with banks successfully received benefits such as interest rate reductions, extended terms.
On Dec. 9, SRI GVT extended its suspension of Parate execution law.
SRI GVT approved the proposal to extend the suspension of the Parate execution law.
Document dated Dec. 9, 2024, received from SRI GVT Dec. 11, summarized Dec. 13.
Extension
Public auctions of properties were temporarily suspended until Dec. 15, 2024 via an amendment to the Recovery of loans by banks (special provisions) act (no.4 of 1990).
SME associations requested further extension, SRI GVT recognized need for a balanced solution; instead of property auction, action plan for loan repayment will be developed.
Effectiveness
Suspension is extended until Mar. 31, 2025.
Apr. 2025 Further Extension
On Apr. 8, 2025, SRI GVT said relief period is extended until Dec. 31, 2025 for SMEs with borrowings below LKR 25mn, provided they approached banks by Mar. 31, 2025.
SMEs with borrowings between LKR 25mn and 50mn have until Sep. 30, 2025 to access relief, while those with loans above LKR 50mn have until Jun. 30, 2025.
SMEs that had initiated discussions with banks before Mar. 31, 2025 are eligible.
SRI GVT encourages SMEs to approach banks if they have not; those that engaged with banks successfully received benefits such as interest rate reductions, extended terms.
