CBSL extends concessions for those affected by COVID-19 third wave
The Central Bank of Sri Lanka has requested banks to extend the concessions in view of challenges faced by companies and individuals in the face of the third wave of COVID-19.
Accordingly, licensed banks have been advised to defer recovery of capital, interest, or both of the existing credit facilities of borrowers who are affected by the third wave of COVID-19, on a case-by-case basis.
Banks have been advised to defer the recovery of capital until 31 August 2021, considering the financial difficulties faced by eligible borrowers.
Banks have also been requested to extend the due dates of revolving credit facilities, including but not limited to facilities such as working capital, pawning, temporary overdrafts, and short-term trade finance facilities until 31 August 2021 as well.
Moreover, banks have also been requested to reschedule the existing non-performing credit facilities as of 15 May 2021, over a longer period, considering the repayment capacity of the borrower and an acceptable revival plan.
The CBSL further stated that businesses and individuals who are affected by COVID-19 can obtain the full set of concessions through licensed commercial banks and licensed specialized banks, after requesting for concessions on or before 21 June 2021.