CBSL to introduce loan schemes for businesses affected by COVID-19

AN | Published: 12:21 PM Jun 17 2020
Business CBSL to introduce loan schemes for businesses affected by COVID-19

Sri Lanka's economic growth has been unsatisfactory over the past few years, and the COVID-19 pandemic could have a major impact on the stability of economic and financial systems in the future if not promptly remedied.

At the meeting held yesterday (16), the Monetary Board decided to introduce new loan programs under section 83 of the Monetary Law Act No. 58. of 1949.

Accordingly, in addition to the Rs. 27.5 billion already issued under the refinancing scheme introduced on 27 March, 2020, the Central Bank of Sri Lanka will finance a wide range of collateral pledges to licensed commercial banks at a concessionary interest rate of 1 %.

Licensed commercial banks will provide these funds to businesses at an interest rate of 4 %, ensuring that local businesses are prioritised.

This scheme and the existing refinancing scheme will provide a total of Rs. 150 billion to businesses affected by the COVID-19 pandemic.

AN | Published: 12:21 PM Jun 17 2020

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