Regulatory Alerts2020-03-10 | Circular No. 1 of 2020Central Bank of Sri Lanka Circular No. 1 of 2020 on Credit Support to Accelerate Economic Growth
The Central Bank of Sri Lanka issued Circular No. 1 of 2020 to mandate Licensed Finance Companies and Specialized Leasing Companies to provide special credit support to eligible Non-Performing borrowers in the Non-Bank Financial Institutions sector. The guidelines require institutions to waive penal interest, defer a portion of accumulated interest, and reschedule principal and future interest over extended periods based on the borrower's repayment history. Additionally, the circular imposes strict documentation and monthly reporting obligations on these institutions to ensure consistent implementation of the scheme.
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