Opposition Leader calls for Parate Law repeal to support struggling SMEs

Micro, small, and medium-scale entrepreneurs (MSMEs) face severe hardships due to rapid fuel price hikes, which negatively impact the production cycle and supply chains.

Opposition Leader Sajith Premadasa made these remarks during a meeting with entrepreneurs at the Opposition Leader's Office in Colombo to discuss their ongoing grievances.

He proposed that the government immediately repeal the Parate Law for these business owners, noting that the sector contributes 52% to the national economy and supports nearly 4.5 million livelihoods.

He warned that a collapse in this field would lead to a breakdown in economic growth, household stability, and national production capacity.

Highlighting that the government claims to have filled the Treasury with trillions in revenue, he urged the revival of businesses affected by five successive tragedies since 2019.

The Opposition Leader further emphasised that the government must implement a dedicated economic package and debt restructuring for MSMEs.

He pointed out that while raw material costs have risen, passing these costs to consumers reduces competitiveness, leaving manufacturers under immense pressure.

Additionally, he noted that the loss of support previously provided through the SVAT system and delays in tax refunds exceeding 90 days have crippled exporters.

He cautioned that rising taxes and operational pressures are driving investment capital and industries, including the garment sector, to relocate to other countries.