Regulatory Alerts2021-12-22 | Circular No. 13 of 2021Deferment of Recovery Actions Against Borrowers Affected by COVID-19 Pandemic
The Central Bank of Sri Lanka directs licensed commercial and specialized banks to suspend all recovery actions, including parate execution and forced repossession of leased assets. This directive extends the general suspension period until 31 March 2022 and maintains existing moratorium deadlines of 30 June 2022 for tourism industry borrowers. The policy aims to alleviate financial pressures on businesses and individuals affected by the ongoing COVID-19 pandemic.
MONETARY BOARD CENTRAL BANK OF SRI LANKA
22 December 2021 | CIRCULAR | No. 13 of 2021
DEFERMENT OF RECOVERY ACTIONS AGAINST BORROWERS AFFECTED BY COVID-19 PANDEMIC
The Central Bank of Sri Lanka, with a view to meeting the challenges faced by businesses and individuals due to the ongoing COVID-19 pandemic, requests licensed commercial banks and licensed specialised banks, (herein referred to as licensed banks) to suspend all types of recovery actions, including parate execution and forced repossession of leased assets as follows:
- Licensed banks shall extend the suspension of all recovery actions stipulated in the Circular No.8 of 2021 dated 01 September 2021 on Concessions for COVID-19 Affected Businesses and Individuals up to 31.03.2022.
- The requirement to suspend all recovery actions stipulated in the Circular No. 10 of 2021 dated 13 September 2021 on Extensions of Debt Moratorium for COVID-19 Affected Businesses and Individuals in the Tourism Industry up to 30.06.2022 shall remain unchanged.
(Signature)
Nivard Ajith Leslie Cabraal Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka