SME leaders handover their petition to Industries and Health Minister Dr. Ramesh Pathirana and Justice Minister Dr. Wijeyadasa Rajapakshe at a forum against parate executions yesterday at the BMICH 

• Assures he will initiate major reforms to existing law and bring in new Act 
• Acknowledges that banks are currently misusing existing Parate Law to confiscate assets of creditors 
• Says SMEs would not be facing challenges if BOC and Peoples Bank had remained true to their objectives

Justice Minister Dr. Wijeyadasa Rajapakshe yesterday assured the country’s entrepreneurs that he will take steps to introduce major reforms to the existing parate law and bring in a new and improved act through parliament. 

Addressing a conference organised by Small and Medium Scale Enterprises on Parate Executions and their impact, the Minister said while the parate law is part of the Roman-Dutch law, it fails to exist today in both Rome and the Netherlands. 

The Minister acknowledged that banks are currently misusing the existing parate law to confiscate the assets of creditors and at times to even benefit personally. 

“Relatives of certain heads of banking institutions have become owners of assets taken possession of and auctioned off under parate executions,” he alleged.

The Minister emphasised that while safeguarding the banking system is crucial, its strength is intrinsically tied to the strength of its customers. 

“Back then only the Bank of Ceylon, People’s Bank and State Mortgage and Investment Bank could carry out parate executions. However, the free economy allowed for the creation of financial institutions and banks,” he noted.

The Minister emphasised that SMEs would not be facing challenges today if the Bank of Ceylon and People’s Bank had remained true to the objectives for which they were initially established.

“Electricity tariffs and taxes have exerted tremendous pressure on entrepreneurs. A decision regarding the parate law is crucial, and significant amendments are imperative. Recommendations will be formulated, presented to the cabinet for approval, and subsequently passed in parliament to establish a new parate law,” he said. 

SMEs request Govt. to temporarily halt parate executions