Licensed commercial banks have dismissed claims that widespread property seizures will follow the end of the parate relief period, urging borrowers not to panic.
In a statement, the Sri Lanka Banks’ Association (SLBA) accused a small group of borrowers of spreading “alarm and confusion” over the potential use of parate execution laws, stressing that most borrowers continue to work constructively with banks on loan rescheduling and repayments.
The SLBA clarified that only a small fraction of borrowers default to the extent of becoming eligible for parate action. It emphasized that banks prefer cooperation over enforcement, aiming to retain customers rather than seize assets.
The association also noted that many banks had voluntarily extended relief beyond the government’s 31st of March deadline, with some borrowers receiving grace periods up to December 2025. However, it warned that public confidence could be harmed by misinformation surrounding the process.
