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Parate execution is the last resort to protect depositors’ funds – SLBA
Banks exercise their legally-enshrined right to Parate Execution as a last resort and the overarching objective is the protection of depositors’ funds that have been lent to borrowers, the Sri Lanka Banks Association (SLBA) has said in a statement to the media.
Responding to what it termed as lobbying by a group of defaulting borrowers espousing the removal or weakening of the protection of depositors’ funds, the Association said the Parate Execution remedy is aimed at recovering mortgaged assets from wilful defaulters and businesses that are no longer viable.
The SLBA, which represents all the licensed banks in the country, emphasized that banks have extended moratoriums on debt repayment for a long period exceeding 48 months in some cases, and that in instances of wilful default by borrowers, the banks owe a duty to their depositors’ whose funds are at risk, to recover the debts overdue and minimize the losses on loans granted.
The Association pointed out that the funds used to grant loans are placed with the banks by their depositors and that depositors are paid interest out of the interest charged from loans granted to borrowers. “Banks are responsible to manage this intermediary role in a very careful manner to avoid deterioration of depositor confidence which can lead to many negative economic consequences,” the SLBA statement said.
“When borrowers face difficulties in repayment, the lending banks review the causes for the inability to repay interest and/or capital, and assess how the situation needs to be remedied to restore the borrower to being able to repay loans and carry on business/economic activity,” the SLBA said. “In such instances it is common for the banks to exercise empathy as a “partner” and assist the borrowers to come out of their challenging financial situation, and it is common for the banks to consider extension of loans, provide moratoriums, consider interest concessions and restructure the loans to suit the future cash flows of the employment or the business.
Banks take this course as the preferred alternative to liquidating the assets of the borrower under loan security arrangements. This is because it is beneficial for the customer as well as the bank to revive a business to good financial health than to shut it down and take whatever residual value is left, which in majority of cases is less than the value of the amounts due to the bank and kills the economic activity that was being financed. The banks therefore take the option of a win-win for all and support the borrowers when they face difficulties.”
“When assessing the condition of the overdue loans and their ability to be revived, banks have to accept that certain cases are beyond revival and/or that the default is wilful and in fraud of the lender. In these limited circumstances banks as responsible financial intermediaries must necessarily invoke the remedies available under the law and this includes ‘Parate Execution’ which is a measure to protect the depositors’ funds from wilful defaulters.”
The Association explained that: “As a natural consequence of investing in a business, a businessman may encounter strains principally on his ability to repay loans that cannot be sustained by bank depositor’s funds i.e. bank financing alone. A decline in the economy as in Sri Lanka due to social and political disturbances, pandemic conditions and an overwhelming public debt burden can also cause businesses to fail.
There has been governmental and external institutional aid to tide over these difficult times but the main reliance has been on the banks that have extended moratoriums on debt repayment for a long period, exceeding 48 months in some cases. The banks provide concessions and interest waivers during these difficult times to borrowers while maintaining interest payments to depositors to maintain confidence.”
“All should acknowledge the fact that the banks, guided by the Central Bank of Sri Lanka, extended their fullest support to weather a very challenging period from the Easter Sunday attacks to the pandemic, and the economic crisis that followed.”
“Parate Execution against assets securing bank debt (depositors’ funds) is the last resort. This is when all efforts at resolution of borrower’s insolvency are met with refusal to review/negotiate, usually by malicious abuse of judicial proceedings which is a common dilatory tactic.”
“It now appears that a group of defaulting borrowers in various sectors have engaged lobbyists of varying degrees of influence to espouse the removal/weakening of the protection of depositors’ funds from wilful value destruction by owners of non-viable businesses where repayment delays are deliberate.”
“Therefore, the banks wish to state the position in relation to reliefs claimed by the borrowers and the cost to the depositors who provide the funds, if recovery actions are taken away:
* Banks are always open to have one-on-one discussions with any borrower who has faced difficulties in meeting debt obligations to have alternative options for loan repayments. This is in the best interest of all stakeholders.
* If there is no source of repayment, postponing recovery action will not solve the issue and ultimately the depositors’ funds will not be returned to the banks.
* The Parate Execution remedy is aimed at recovering mortgaged assets from wilful defaulters/businesses that are no longer viable.
* The overarching objective is to protect depositors’ funds that have been lent to wilful defaulters/ borrowers.
* Depositors’ confidence is of paramount importance for economic growth which is much needed in the Sri Lankan context.
* If Parate Rights are taken away, banks will be compelled to be extremely selective in lending and the availability of finance will be to a narrowing segment of entrepreneurs, resulting in credit to the private sector shrinking, contrary to Government and regulatory policies.
News
Discussion on Anuradhapura Sacred City Development Plan
A discussion on the Anuradhapura Sacred City Development Plan was held on Wednesday (30) afternoon at the Presidential Secretariat, under the leadership of Chief of Presidential Staff Prabath Chandrakeerthi and Acting Deputy High Commissioner/First Secretary of the High Commission of India Roshini Thomson.
During Indian Prime Minister Narendra Modi’s official visit to Sri Lanka, he had expressed his agreement to provide assistance for a Sacred City development project when he visited the Jaya Sri Maha Bodhi in Anuradhapura.
Accordingly, the Urban Development Authority and the Department of National Physical Planning have proposed jointly implementing development activities in the Anuradhapura Sacred City.
The draft proposal prepared jointly by the Urban Development Authority and the Department of National Physical Planning has already been submitted to the High Commission of India, and the discussion focused on the proposal.
President Anura Kumara Dissanayake also recently held discussions with the Maha Sangha and all relevant stakeholders regarding the Anuradhapura Sacred City Development Plan, and instructed officials to expedite the project.
The initial cost of implementing the Anuradhapura Sacred City Development Plan is currently estimated at Rs. 7.7 billion. The Government of India is expected to provide the financial contribution required for the project, which is expected to commence before the end of this year.
Under the project, a range of development programmes are to be launched while preserving the antiquity and religious character of the Anuradhapura Sacred City. These will include renovating access roads, ensuring the proper disposal of waste, improving sanitation facilities and restoring all dilapidated sites.
Second Secretary (DC) at the High Commission of India Ramya C. S., Director General of the Department of National Physical Planning W.T.H. Ruchira Withana, Director General of the Urban Development Authority D.M.D.S. Dissanayake and Director of the Department of External Resources Chandrika Senanayake, along with senior officials of the High Commission of India and officials from relevant institutions, were among those present at the occasion.
[President’s Media Division (PMD)]
News
India enter Asian Games final after Kishan and Bumrah ride roughshod over Sri Lanka
Defending champions India registered their biggest T20I win against Sri Lanka to make the final of the 2026 Asian Games men’s competition in Nisshin on Thursday.
A day after the ODI side chased down 406 against West Indies like it was child’s play on a flat Guwahati pitch, the T20I side scraped their way to 169, well above-par on a treacherous track filled with cracks. Sri Lanka were no match after that.
The result sets up the first India vs Pakistan final of 2026, and there will be a gold medal at stake.
Sri Lanka were a touch unlucky as Ishan Kishan miscued many aerial shots but they all fell in no-man’s land. But Nuwanidu Fernando did drop Kishan on 56, and that didn’t help as he went on to make 80* in just 46 balls. There were a couple of balls that misbehaved wildly, and it was a sign of things to come.
The chase felt like an act of cruelty against batters. Jasprit Bumrah bowled Test lengths and added new degrees of unplayability to the existing ones. Axar Patel bowled 14 dots and got a two-for and India finished the game with a team hat-trick. On top of all that, Sri Lanka suffered three run outs, two of which were of top-four batters.
In the end, they were rolled over for 45, the second lowest total in men’s games at the Asian Games and the joint-lowest total for a Full-Member team in men’s T20Is, alongside West Indies’ 45 against England in 2019.
India picked four spinners in their XI and Sri Lanka three in what was their first bit of action at the competition after their quarter-final fixtures were rained out. It proved to be the right strategy as spinners bowled 83% of all the balls bowled (149 out 179) across the 29.5 overs of play. They took 12 wickets, bowled 73 dots and went at an economy of 6.56. The quick bowlers conceded 44 runs in 30 balls. Bumrah’s share in that: 2 for 7 in two overs.
The bowlers’ domination started early in the game as the weather held for the second game running on the day.
Both Abhishek Sharma and Sanju Samson fell to fingerspin while trying to open up the off side. Samson made room and looked to go inside out over cover and was beaten by extravagant spin, but went for it again and Tharindu Ratnayake fired the ball in to smash his stumps. Sahan Arachchige, who had Abhishek lob one to short third, then checked every form of deviation to knock over Shreyas Iyer – the ball angled in, dipped, drew the batter forward and turned away to hit the stumps.
In the chase, Sineth Jayawardena looked to take Bumrah on early and looked hapless as the ball seamed in to beat the across-the-line swing and hit him on the back leg in front of all three. Sohan de Livera fell victim to Bumrah’s exaggerated angle from over the wicket and nicked to the keeper. For the first time in a men’s T20I, India has taken two wickets before conceding a run.
The fifth ball of Bumrah’s second over trampolined off a length, seemed to pick up pace off the pitch, and needed Samson to leap right up to catch it. Nuwanidu, the batter, was lucky that the line of the ball was not straighter.
Despite the Bumrah threat, India did not turn to pace for the remainder of the innings. That was likely because Lasith Croospulle was run out by sharp work from Ravi Bishnoi at short third in the over before, and Arachchige and Ashen Bandara committing the cardinal sin of sweeping Axar and giving away their wickets.
Washington Sundar’s introduction with Sri Lanka on 18 for 5 did not faze Nuwanidu. The first ball spun big but went down leg. Next three balls had two sixes, the second an effortless twirl of the bat to send the ball over long-on. Then Nuwanidu went for a non-existent single to short third and Sri Lanka ran their way out to a point of no return.
In conditions where batting was far from easy, Kishan and Vaibhav Sooryavanshi found ways to maximise the strengths of their respective games.
Sooryavanshi opened up the off side repeatedly by either making room or standing still and slapping balls, even when they were angling in. He brought up India’s 50 with 4, 6, 4 off Tharindu Ratnayake but fell to Arachchige, in similar fashion to Abhishek, soon after. He made 38 off 21. Only behind Kishan’s 80 not out. The next highest individual score was Nuwanidu’s 15.
Kishan then walked out and hit two sixes in his first 12 balls. He waited for the bad ball and wasn’t going to miss out if he got one… or two. However, he had to take chances as Shreyas Iyer fell and Axar – promoted above Tilak Varma – got stuck. Kishan’s reverse sweep off Arachchige from a leg-stump line during this slowdown showed he could pull off risks on demand.
Both Axar and Tilak fell cheaply but took India past 100 with handy stands with Kishan, who forced errors out of bowlers and brought up a 33-ball fifty in the 17th. He could have been out twice in the next two balls but survived a ball that turned in a right angle and Nuwanidu’s drop at mid-off.
India hit four sixes and four fours in the last eight overs. Kishan hit all of them bar the last six, hit by Washington. That took them to 169 for 7, a par score in general, maybe twice the par on the day.
Scores:
India 169 for 7 in 20 overs (Vaibhav Sooryavanshi 38, Shreyas Iyer 13, Ishan Kishan 80*; Tharindu Ratnayake 2-32, Sahan Arachchige 2-28, Wanuja Sahan 1-17, Lasith Croospullle 1-25, Nuwanidu Fernando 1-20) beat Sri Lanka 45 in 905 overs (Nuwanidu Fernando 15; Jasprit Bumrah 2-07, Axar Patel 2-08, Washington Sundar 1-18, Abhishek Sharma 2-2, ) by 124 runs
[Cricinfo]
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I extend my heartfelt wishes to all the sons and daughters of our country for a Happy World Children’s Day – President
Children’s Day Message from President Anura Kumara Dissanayake:
“Children are the most valuable asset of a nation. Ensuring their physical and mental well-being and creating an environment conducive to their proper development is a primary responsibility of any government. Children’s imagination, aspirations and creativity will determine the shape and colour of the country tomorrow. The country we build for children must not merely be a country prepared to be handed over to them in the future; it must be a country that gives space to their dreams today, listens to their voices and provides opportunities for them to realise their potential.
For the best interests of children, we are taking the necessary steps to ensure equal access to education, guidance, social protection, opportunities for sport, leisure and recreation, proper nutrition and access to healthcare, while protecting children from all forms of violence and discrimination and safeguarding their rights.
Race, religion, economic status, geographical background or any other circumstance should not be a barrier to any child’s education or proper development. Every child should have equal and fair opportunities to realise their potential, pursue their dreams and create the future they wish for themselves. To this end, we have already begun the process of reforming the education system in Sri Lanka, transforming it towards a skills-based system suited to the new world, one that does not place a burden on parents or cause distress to children.
Our aim is to ensure that no child is left behind in the new Sri Lanka we are building, and to provide every child with opportunities for development in a safe environment. It should be emphasised that the fundamental objective of all the programmes being implemented, from expanding educational scholarships to securing the future of children growing up in child development centres and those in need of care, is to create a dignified and secure tomorrow for every child in the country.
It is the aspiration of every parent to give their children a better life than the one they themselves experienced. We are currently steering the country’s economy towards a correct and stable direction in order to provide children with a safe and happy childhood, free from the shadows of an unstable economy. At the same time, we have launched the national operation “A Nation United” (Ratama Ekata), bringing everyone together to free the younger generation from the menace of illicit drugs.
At a time when we are working towards the goal of building a safe and better country for children, I greatly appreciate the initiative of the Ministry of Women and Child Affairs in organising this year’s World Children’s Day celebrations under the theme “Strong Minds – Enriched Children”, declaring a National Children’s Day Week and conducting a range of meaningful programmes aimed at strengthening children’s rights, well-being, protection, education and freedom.
I extend my heartfelt wishes to all the sons and daughters of our country for a Happy World Children’s Day”.
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