The Cabinet of Ministers approved extending the moratorium on the execution of the ‘Parate’ Law, halting property seizures by banks, until 31 March 2025.

This decision follows difficulties faced by Small and Medium Enterprises (SMEs) in repaying loans during Sri Lanka's economic crisis, which led to the auctioning of properties due to defaults.

Accordingly, the Government plans to introduce a repayment action plan as an alternative to property auctions and tasked the Central Bank of Sri Lanka (CBSL) with developing a comprehensive mechanism involving banks and Government institutions.