Regulatory Alerts2020-11-27 | Circular No.12 of 2020Amendment to Circular No. 11 of 2020 on Debt Moratorium for COVID-19 Affected Businesses and Individuals
The Central Bank of Sri Lanka issued Circular No. 12 of 2020 to amend the debt moratorium framework for businesses and individuals affected by the pandemic. The deadline for eligible borrowers to submit applications for relief was extended to December 10, 2020, while non-bank financial institutions must finalize and communicate decisions within 45 days of receipt. Additionally, Chief Executive Officers and Compliance Officers are now mandated to establish internal procedures for granting relief and instruct branch staff accordingly.
MONETARY BOARD CENTRAL BANK OF SRI LANKA
27 November 2020 | CIRCULAR | No. 12 of 2020
AMENDMENT TO CIRCULAR NO. 11 OF 2020 ON DEBT MORATORIUM FOR COVID-19 AFFECTED BUSINESSES AND INDIVIDUALS
Central Bank of Sri Lanka issues the following amendments to the Circular No. 11 of 2020 on Debt Moratorium for Covid-19 Affected Businesses and Individuals.
Paragraph 2 of the Circular No. 11 of 2020 is amended as follows.
2. Deadline for submission of the application:
2.1. The deadline for the submission of request by eligible borrowers to avail the concession has been extended until 10.12.2020. NBFIs are required to finalize the decision and communicate the decision (grant/deny) in writing to the applicant within 45 days of submitting the request. The other clauses of this paragraph remain unchanged.
The following clause is added immediately after paragraph 2.1.
2.2. All Chief Executive Officers and Compliance Officers are responsible to lay down the procedure to be followed in granting the relief measures and instruct the branch level staff accordingly.
(Signature)
Prof. W D Lakshman Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka