ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers had approved a proposal by President Ranil Wickremesinghe to amend the country’s loan recovery law and halt auctioning of defaulted loans till December 15, Minister Bandula Gunawardena said.
“Various parties have pointed out issues existing in paying off the loans obtained by small and medium scale businessmen from banks,” Gunawardena said Tuesday.
“Therefore, it is apparent that a sufficient grace period to pay off relevant debts without being a burden to the banking system should be allowed.”
“Accordingly, the Cabinet of Ministers granted approval … to suspend the procedure by the banks to acquire properties of loans not paid off, until 15 December 2024, and to amend Section 4 of the Recovery of Loans by Banks (Special Provisions) Act No, 4 of 1990 to impose legal provisions required for the above.” (Colombo/Feb27/2024)
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