The Central Bank of Sri Lanka (CBSL) has urged borrowers to take advantage of the relief measures available for small and medium-sized enterprises (SMEs) before the deadline of March 31, 2025.
These measures, which were introduced in partnership with the Sri Lanka Banks’ Association (SLBA), were detailed in Circular No. 04 of 2024 issued on December 19, 2024, and its addendum, Circular No. 01 of 2025, issued on January 1, 2025.
CBSL advises borrowers who face rejections or disputes regarding the relief measures to first reach out to their respective banks. If the issue remains unresolved, they can file an appeal with the Director of the Financial Consumer Relations Department at CBSL through the designated channels.
The relief package includes options such as rescheduling credit facilities for up to 10 years, extending repayment periods based on outstanding capital, waiving unpaid interest under specific conditions, and providing new working capital loans. Borrowers must submit a business revival plan that demonstrates their ability to repay in order to qualify for these measures. However, to date, only a small number of borrowers have approached licensed banks for assistance.
Additionally, CBSL issued Circular No. 02 of 2024 on March 28, 2024, titled Guidelines for the Establishment of Business Revival Units of Licensed Banks. This circular mandates that banks establish Business Revival Units (BRUs) to support viable businesses facing financial challenges. These units assist by offering services such as restructuring and rescheduling of credit facilities, adjusting interest rates, extending loan maturities, providing interim financing, and offering advisory support. As of the end of 2024, approximately 6,000 services had been facilitated through these BRUs.
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