Central Bank extends concessions for COVID-19 affected businesses & individuals

With a view to meeting the challenges faced by businesses and individuals due to the third wave of COVID-19, Sri Lanka’s Central Bank has requested banks to extend the concessions.

Accordingly, deferment or restructuring of existing credit facilities in the performing category as well as concessions for credit facilities in the non-performing category has been introduced through a circular.

Banks shall defer recovery of capital, interest, or both of the existing credit facilities of borrowers who are affected on case-by-case basis, during the period up to 31 August 2021, considering the financial difficulties faced by the eligible borrowers, such as loss of job, loss or reduction of income/salaries or sales, closure of business, etc.

Alternatively, licensed banks may restructure the existing credit facilities over a longer period, considering the repayment capacity of the borrower and an acceptable revival plan.

Banks shall extend the due dates of revolving credit facilities, including but not limited to facilities such as working capital, pawning, temporary overdrafts, short-term trade finance facilities, etc., during the period up to 31 August 2021.

Banks may also reschedule the existing non-performing credit facilities as at 15 May 2021, over a longer period, considering the repayment capacity of the borrower and an acceptable revival plan.

COVID-19 affected businesses & individuals can obtain the full set of concessions through licensed commercial banks and licensed specialised banks. Eligible borrowers may request for concessions on or before 21 June 2021.