MONETARY BOARD

CENTRAL BANK OF SRI LANKA

10 September 2021        CIRCULAR        No. 07 of 2021

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AMENDMENT TO CIRCULAR NO. 06 OF 2021 ON CONCESSIONS FOR COVID-19 AFFECTED BUSINESSES AND INDIVIDUALS

Central Bank of Sri Lanka issues following amendments to the Circular No. 06 of 2021 on concessions for COVID-19 affected businesses and individuals.

Paragraph 1(a), 1(e), 1(f), 2(c) and paragraph 4 will be amended as follows. All other clauses will remain unchanged.

1. (a) NBFI shall extend the deferment of recovery of capital, interest, or both of the existing credit facilities of borrowers who enjoying the deferment under Circular No. 06 of 2021 until 30 September 2021.

2. (e) Penal interest shall not be accrued or charged during the concessional period, i.e., up to 30 September 2021.

3. (f) NBFI shall accommodate any request from affected borrowers to delay the due dates of loans repayment by few days (maximum 15 working days) due to the quarantine lockdown without deferring or re-structuring such facilities. NBFI shall not charge any additional interest or other charges for such delay.

4. (c) NBFI shall suspend all types of recovery actions against credit facilities of eligible borrowers that have been classified as non-performing on or after 01 April 2020, until 30 September 2021.

5. NBFI shall not charge any early settlement fee for eligible borrowers under this circular, in the case where a borrower has expressed his willingness to settle his/her existing credit facilities on or before 30 September 2021, instead of opting for the deferment or restructuring of the existing credit facility/facilities.

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Prof. W D Lakshman
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka