Sri Lanka, July 2 -- The Sri Lanka Banks' Association (SLBA), the collective voice of all licensed commercial banks in the country, today moved to quell alarmist claims regarding widespread parate proceedings now that the grace period for loan repayments has concluded. The SLBA firmly stated that banks have no intention of launching a flood of parate actions, emphasizing that such measures remain a last resort.
Following the government's suspension of parate laws until March 31, 2025, the banking sector voluntarily extended this moratorium for an additional three months. This extension aimed to provide struggling borrowers with ample time to engage with banks and restructure their loans, leading to many obtaining further relief, with some ...