New Sri Lanka law to ease borrowing for small businesses
ECONOMYNEXT – Sri Lanka’s Cabinet of ministers has approved plans to draft a new law that would make it easier for small businesses to borrow, a government spokesman said.
Health Minister Rajitha Senaratne said the government intends to replace the Secured Transactions Act No 49 of 2009 with a new law more suited to present economic conditions.
The Secured Transactions Act aimed to help small and medium scale enterprises to borrow from banks and financial institutions by pledging mobile assets such as machinery as collateral if they did not have fixed assets.
But he said in practice provisions in the law did not work and its expected objectives could not be fulfilled.
A new law is to be drafted on a proposal made by Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs. (Colombo/December 10 2015)