Categories: Headlines

LNP – CBSL introduces new loan rescheduling measures for SMEs

The Central Bank of Sri Lanka (CBSL) has issued a circular to licensed banks recently, highlighting relief measures to be provided to Small and Medium Enterprises (SMEs) affected by the Easter Sunday attacks, the COVID-19 pandemic, and the extraordinary macroeconomic conditions that prevailed in the recent past.

These measures have been developed with the Sri Lanka Banks’ Association and are in line with the Working Committee on Recovery of Loans under the Special Provisions Amendment Act No. 26 of 2024.

According to the new relief measures, loans provided to SMEs that have become non-performing loans will be rescheduled based on the borrower’s ability to repay and an acceptable business revival plan.Â

The CBSL stated that all rescheduling agreements must be finalized by June 15, 2025.

Accordingly:
•SMEs with loan balances below Rs. 25 million must begin repayment by December 31, 2025.

•SMEs with loan balances between Rs.25 million and Rs.50 million must begin repayment by September 30, 2025.

•Repayment of loans above Rs.50 million must begin by June 30, 2025.

Additionally, the CBSL claims that SMEs may receive interest waivers on unpaid amounts from April 2019 to December 15, 2024, depending on how quickly the interest is settled:

•A 65% waiver for loans between Rs. 5 million and Rs. 10 million if the interest is settled within 6 months.

•A 50% waiver for the same category if settled within 12 months.

•A 40% waiver if the interest is settled between 1 to 5 years.

The CBSL further stated that banks should not reject new loan applications solely based on adverse CRIB records.

It added that if relief is denied, borrowers should be informed of the reasons and given the option to appeal to the Director of the Financial Consumer Relations Department at the Central Bank.

These relief measures will apply to SME borrowers whose loans became Stage 3 non-performing loans after April 1, 2019.Â

Additionally, the CBSL emphasized that SMEs must engage with their bank’s Business Revival Units by March 31, 2025, and submit the required documents to be eligible for the relief.

Tyronne Jayamanne

Recent Posts

LNP – NPP MP reveals govt’s foreign employment plans for South Korea, Japan, and Israel

National People’s Power (NPP) MP Ajith Gihan has explained how the government intends to provide…

19 hours ago

LNP – Trump administration mulling new travel restrictions on citizens from dozens of countries

The Trump administration is considering issuing travel restrictions for the citizens of dozens of countries…

19 hours ago

LNP – March tourist arrivals cross 100,000 mark in two weeks

The tourist arrivals to Sri Lanka have surpassed 97,000 within the first 13 days of…

1 day ago

LNP – Cardinal Ranjith demands justice for Easter attacks, warns of protests if promises remain unfulfilled

The Archbishop of Colombo, His Eminence Cardinal Malcolm Ranjith, expressed hope that justice will be…

1 day ago

LNP – Fairly heavy showers expected in parts of the island

The Meteorology Department says that showers or thundershowers will occur at times in the Northern,…

1 day ago

LNP – Ex-President Ranil to make special statement on ‘Batalanda’ Commission report today

Former Sri Lankan President Ranil Wickremesinghe is set to deliver a special statement today (16)…

1 day ago