Regulatory Alerts2021-09-01 | Circular No. 8 of 2021Concessions for COVID-19 Affected Businesses and Individuals
The Central Bank of Sri Lanka issued this circular to require licensed banks to extend COVID-19 concessions by deferring or restructuring capital and interest for performing and non-performing credit facilities of affected borrowers. The directive prioritizes MSMEs, suspends recovery actions and penal interest until December 2021, waives credit card late fees, and modifies Credit Information Bureau reporting to protect borrowers' future credit scores. Borrowers must submit requests by 21 September 2021, prompting banks to apply concessionary interest rates, adjust accounting provisions, and report monthly to ensure consistent sector-wide implementation.
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