Over 1000 SMEs repossessed and auctioned in 2023 claims AKD

Friday, 15 December 2023 00:50 - - {{hitsCtrl.values.hits}}

Blames collapse of businesses on weak governance of past administrations
Stresses those who have committed wrongs must be removed for SL to be rebuilt
Raises concerns on imposing taxes on software and digital industry leading to an exodus of businesses from SL

NPP Leader Anura Kumara Dissanayake

The National People’s Power (NPP) leader Anura Kumara Dissanayake on Wednesday disclosed that at least 1183 Small and Medium Scale (SME) businesses were repossessed and auctioned by banking institutions through Parate Executions this year.

Speaking in Parliament, Dissanayake noted that Small and Medium Enterprises (SMEs) are often set up with bank loans and have now lost their businesses due to the government’s misguided decisions.

“The economic challenges faced by the people require solutions. Unfortunately, banks have auctioned off SMEs through Parate Executions.

From 1 January to 31 November, a total of 1183 businesses have been auctioned off. These entrepreneurs have borne losses due to the weak governance of previous administrations. The purchasing power of the people has diminished, exacerbated by increased bank interest rates,” he remarked.

The MP remarked that despite the President’s assertion that he has safely taken the baby across the bridge, in reference to the Caucasian Chalk Circle, the NPP leader added that it seems the baby has nonetheless lost both its clothes and protective amulet along the way. According to the MP, the country has also suffered a similar fate to that of the baby.

Dissanayake said regardless of one’s political affiliation, those who have committed wrongs must be removed for the country to be rebuilt.

He also emphasised that imposing taxes on the software market creates a risk of companies established in Sri Lanka relocating to other countries. “Due to the imposed taxes, if a Sri Lankan company purchases software from a domestic software company, it will be subject to VAT. However, if the same software is bought from a foreign company, it will be exempt from VAT,” he pointed out.