Regulatory Alerts2022-07-20 | Circular No. 1 of 2022Concessions to Affected Borrowers Amidst Extraordinary Macroeconomic Circumstances
The Central Bank of Sri Lanka requires Non-Bank Financial Institutions to provide targeted repayment concessions, including grace periods and restructuring, to affected borrowers whose income or business has been impacted by current macroeconomic conditions. These measures cap applicable interest rates at 20% or the prior contractual rate plus five percent, suspend forced seizure and recovery actions for non-performing facilities until December 2022, and facilitate fee-free early settlements upon borrower request. Financial institutions must obtain written or electronic consent, report concession details monthly to the Department of Supervision, and ensure transparent decision-making within one month of receiving borrower applications.
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