Banks affirm strong support for SMEs while reiterating need to protect customer deposits

SLBA categorically states claims by some parate laws as an aggressive first response by banks are exaggerated and dangerously counterproductive at a time when majority of borrowers are working constructively with banks to revive their businesses

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■Stresses parate laws exist to protect depositors' funds, which are lent in good faith to support individuals, SMEs, and larger enterprises alike ■Reveals during most challenging years between 2019 and 2023 less than 1% of non-performing loans were ultimately subjected to parate action ■Urges all borrowers facing difficulties to approach their banks without delay, to explore solutions in a transparent and proactive manner

THE Sri Lanka Banks' Association (SLBA), representing all licenced commercial banks in the country, yesterday issued a statement firmly rejecting attempts by a small group of borrowers to create alarm and confusion over the potential use of parate laws, and assuring the business community and the public that banks have no intention of launching widespread parate proceedings now that the grace period has ended.