The Central Bank of Sri Lanka (CBSL) has issued a new circular directing all licensed banks to provide relief measures to individuals and businesses whose income or operations have been directly affected by the current adverse conditions.
According to the circular, banks are directed to extend the following relief measures:
- Licensed banks may suspend the repayment of capital and/or interest of existing credit facilities of the affected borrowers, for a period of 3 to 6 months, on a case-by-case basis, based on the underlying risks, future repayment capacity and the viability of the borrower in the medium term in the post disaster environment.
- Licensed banks to grant new loan facilities to affected individuals and businesses on a case-by-case basis considering the debt service capacity of the borrower, subjected to several regulations.
- Banks shall not decline new loan applications from borrowers solely based on adverse Credit Information Bureau (CRIB) records.
- Licensed banks are also directed to report the details of the relief measures availed by their borrowers and the rejections of relief measures under this Circular to the Director of Bank Supervision, at each month end, within 15 calendar days, commencing 31 December 2025.
See the full circular below:
CBSL issues circular directing banks to provide relief for disaster-affected businesses by Adaderana Online
